Dec 5 2009
Sterling Construction Company, Inc. (NasdaqGS: STRL) (“Sterling” or the “Company”) announced today that it has completed the acquisition of an 80 percent ownership interest in Ralph L. Wadsworth Construction Company (“RLW”), headquartered near Salt Lake City, Utah. Sterling paid $64.7 million for the 80 percent ownership interest in RLW that it purchased from four related individuals, who have retained the remaining 20 percent interest subject to a put/call arrangement.
RLW is a heavy civil construction company focused on the design and construction of bridges, roads and highways, primarily in the state of Utah. RLW's largest customer is the Utah Department of Transportation, which is responsible for the planning, construction, operation and maintenance of the 6,000 miles of highway and over 1,700 bridges that make up the state highway system. RLW has a track record of providing timely and profitable execution of construction contracts, with a particular emphasis on using its design-build expertise in all phases of designing, permitting and constructing a project. RLW had revenues of approximately $112 million for the nine months ended September 30, 2009.
According to Joe Harper, Sr., Sterling’s President & Chief Operating Officer, “This acquisition broadens our Company’s geographical reach into one of the fastest growing states in the nation and brings aboard a company with significant expertise in both design-build delivery methods and structural construction." Mr. Harper noted that “The acquisition is intended to provide a number of benefits for Sterling, including —
- Ability for Sterling to expand on RLW’s significant experience in design-build delivery;
- Ability for Sterling to utilize RLW’s significant structural construction expertise;
- Expansion of Sterling into Utah, an attractive market with good long-term growth dynamics;
- Expansion that complements our existing market locations and advances our strategy of geographical diversification;
- A strong and innovative management team with a similar corporate culture; and
- Strong financial results that will be immediately accretive to our earnings per share.”
Source: http://www.sterlingconstructionco.com/