Primoris Services (PRIM) Acquires Sprint Services for $28M + Incentives
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Primoris Services Corporation (Nasdaq: PRIM) has acquired Sprint Pipeline Services, L.P. (“Sprint”). Based in Pearland (Houston), Texas, Sprint provides a comprehensive range of pipeline construction, maintenance, upgrade, fabrication and specialty services primarily in the southeast United States.
For the year ended December 31, 2011, Sprint generated revenues of approximately $70 million. The majority of Sprint’s revenues were derived from Master Service Agreements (MSA) with its pipeline customers.
Total consideration was approximately $28 million, $20 million of which was paid at closing and consisted of 62,052 shares of Primoris common stock, valued at $1 million, and $19 million in cash. Incentive provisions, which take into account Sprint’s financial performance over the past several years, could provide additional cash consideration totaling $8 million based on Sprint achieving the following EBITDA (as that term is defined in the asset purchase agreement) targets:
For the year ended December 31, 2011, Sprint generated revenues of approximately $70 million. The majority of Sprint’s revenues were derived from Master Service Agreements (MSA) with its pipeline customers.
Total consideration was approximately $28 million, $20 million of which was paid at closing and consisted of 62,052 shares of Primoris common stock, valued at $1 million, and $19 million in cash. Incentive provisions, which take into account Sprint’s financial performance over the past several years, could provide additional cash consideration totaling $8 million based on Sprint achieving the following EBITDA (as that term is defined in the asset purchase agreement) targets:
- $7 million for the period March 12, 2012 through December 31, 2012 would result in cash payment of $4 million to the Sellers; and
- $7.75 million for the calendar year 2013 would result in an additional $4 million cash payment to the Sellers.
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