THE WOODLANDS, Texas, November 16, 2023 /PRNewswire/ — Sterling Infrastructure, Inc. (NasdaqGS: STRL) (“Sterling” or “the Company”) today announced the acquisition Professional Plumbers Group, Incorporated (PPG) headquartered in Wylie, Texas. PPG serves a number of homebuilders in the Dallas area and will join Sterling’s Building Solutions segment.
- The purchase price consists of a cash payment of US$50 million and an earnout possibility, which is contingent on the achievement of future EBITDA targets
- Annual sales of $50 to $55 million
- Strong, increasing margin profile
- Common outsourcing work model
- PPG handles all major plumbing phases for new residential buildings, expanding Sterling’s residential services offering in the Dallas market to the next critical phase of construction once the slab is complete
- Free customer base with the ability to cross-sell services
“We are thrilled to have the PPG family join the Sterling team. PPG is a leading provider of plumbing services to homebuilders in one of the nation’s most important residential real estate markets. The company has extremely strong relationships with its customers and a history of excellent execution and profitability,” stated Joe Cutillo, Chief Executive Officer of Sterling. “With this acquisition, we not only expand our services and customer base, we also become a homebuilder “More valuable as a full-service concrete slab and plumbing provider. We welcome PPG to our team and believe in their strong values, commitment to customers, and entrepreneurial spirit are a perfect fit for Sterling.”
Sterling Infrastructure, Inc., (“Sterling,” “the Company,” “we,” “our,” or “us”), a Delaware corporation, operates through a variety of subsidiaries in three segments focused on e-infrastructure, transportation and building solutions in The United States specializes in states, primarily in the southern, northeastern, mid-Atlantic and Rocky Mountain regions, as well as Hawaii. E-Infrastructure Solutions provides advanced, large-scale site development services for manufacturing, data centers, e-commerce distribution centers, warehousing, power generation and more. Transportation Solutions includes infrastructure and rehabilitation projects for highways, roads, bridges, airports, ports, rail and drainage systems. Building Solutions’ projects include residential and commercial concrete foundations for single-family and multi-family homes, parking structures, raised slabs and other concrete work. From strategy to operations, we are committed to sustainability by acting responsibly to protect and improve society’s quality of life. Taking care of our employees and our communities, our customers and our investors – that is The Sterling Way.
Joe Cutillo, CEO: “We build and maintain the infrastructure that enables our economy to function.
Our people should move and our country should grow.”
Important information for investors and shareholders
Cautionary Statement Regarding Forward-Looking Statements
This press release contains statements that constitute forward-looking statements within the meaning of the federal securities laws. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control. These may include statements about: our projections or expectations regarding synergies and other benefits from the transaction; our business strategy; our financial strategy; our industry outlook; and our plans, goals, expectations, forecasts, outlook and intentions. All of these types of statements, other than statements of historical fact contained in this press release, are forward-looking statements. In some cases, forward-looking statements can be identified by words such as “may,” “will,” “would,” “could,” “should,” “expect,” “plan,” “project,” “intend.” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “pursue,” “seek,” “continue,” the negative of these terms or other comparable terminology. The forward-looking statements contained in this press release are based largely on our expectations, which reflect estimates and assumptions made by our management. These estimates and assumptions reflect our best judgment based on currently known market conditions and other factors. In addition, management’s assumptions about future events may prove to be inaccurate. Management cautions all readers that the forward-looking statements contained in this press release are not guarantees of future performance and we cannot guarantee any reader that such statements will become reality or the future-looking events and circumstances will occur. Although we believe that estimates and assumptions are reasonable, they are inherently uncertain and involve a number of risks and uncertainties that are beyond our control, including the possibility that the expected benefits from the transaction may not be fully realized or may take longer to realize than expected, and the possibility that the costs or difficulties of integrating the acquired business will be greater than expected. Actual results may differ materially from those anticipated or implied by the forward-looking statements as a result of these factors and the other factors set forth in the “Risk Factors” section of our filings with us US Securities and Exchange Commission and elsewhere in these documents. Additional factors or risks that we currently consider to be immaterial, that are not currently known to us or that may arise in the future could also cause our actual results to differ materially from our expected results. Given these uncertainties, investors are cautioned that many of the assumptions on which our forward-looking statements are based are likely to change after the date on which the forward-looking statements are made. The forward-looking statements speak only as of the date they are made, and we undertake no obligation to publicly update or revise any forward-looking statements for any reason, whether as a result of new information, future events or developments, changed circumstances or otherwise , regardless of any changes in our assumptions, changes in business plans, actual experience or other changes. These cautionary statements qualify all forward-looking statements attributable to us or persons acting on our behalf.
Investor Relations Corporate Contact
Sterling Infrastructure, Inc.Noelle Dilts, VP IR and corporate strategy
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SOURCE Sterling Infrastructure, Inc.