James Construction Company To Be Sold

California-based Primoris Services Corp. announced today it has signed a $135 million deal to acquire Baton Rouge-based James Construction Group LLC, one of the largest privately owned construction companies in the Southeast.

The deal consists of $7 million in cash; a five-year $53.5 million promissory note with escalating interest of 5 percent to 8 percent; and shares of Primoris preferred stock valued at $64.5 million. The preferred stock will be automatically converted into shares of Primoris common stock after approval of Primoris shareholders.

The deal calls for James Construction to become a Primoris subsidiary, with the business to continue under the current management, headed by James Construction Chief Executive Officer Mike Kilgore.

In other news, business construction continues to slump in the current economy. Project manager construction company representatives and the industry as a whole hopes for a rebound in 2010, but it may not happen until 2011.

Construction Company News

According to one anаlyst, higher natural gas and oil priceѕ could boost the οutlook foг aѕ мany as six engineering and construction companies. Thө mаin asѕumptions are that oil prices will not droр below $60.00 а barrel іnto next yөar. It alsο includeѕ an outlook that can sustain beyond tһe yөar 2010. This analyst also said that industrial demand in the USA remained somewhat weak and should not materially weaken any further.

It is also been suggested that Federal stimulus spending could prompt additional construction spending by various Federal agencies. If true, this could offset the decline in state transportation spending. These new price targets make the assumption that regulators will continue to push renewable energy as one of the main power sources available to both businesses and residences.

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