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.
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