Tutor Perini Corporation Acquires GreenStar Services Corporation
July 1, 2011
SYLMAR, Calif., Jul 01, 2011 (BUSINESS WIRE) -- Tutor Perini Corporation (NYSE: TPC) a leading civil and building construction company, today announced that it has acquired GreenStar Services Corporation ("Greenstar"), one of New York's largest providers of Electrical and Mechanical services and systems.
GreenStar is primarily comprised of three operating entities: Five Star Electric Corporation and WDF, Inc., which are located in New York, and Nagelbush Mechanical, which is located in Florida. GreenStar has over 1,900 employees and has a current backlog of approximately $1.2 billion. Revenues in fiscal year 2010 were approximately $560 million.
With over 80 years of experience, GreenStar has served a range of clients in a wide variety of markets including transportation, infrastructure, commercial, school and university, residential, and specialty construction. Among the prestigious projects GreenStar is currently working on are the World Trade Center Towers 1, 2, 3 and 4, the Path Transportation HUB, the 9/11 Memorial Museum, and the Madison Square Garden renovation project.
Under the terms of the transaction, Tutor Perini acquired GreenStar through a merger with a wholly-owned subsidiary of Tutor Perini for an initial purchase price of $208.4 million, plus a structured earnout based on the achievement of certain profitability targets over the next five years. The purchase price consists of $100 million in cash paid at closing, a $74.9 million promissory note issued at closing and $33.5 million of holdbacks to secure certain indemnification obligations. The note is payable no later than October 31, 2011.
Five Star Electric Corporation, WDF, Inc. and Nagelbush Mechanical will continue to operate under their current company names and will continue to be managed by their current senior management team.
Gary Segal, CEO of Five Star Electric Corporation, said, "I believe the keys to our success are our first rate employees, stellar reputation, and the best client base in New York."
Larry Roman, CEO of WDF, Inc., said, "Our ability to offer one-stop shopping, including in-house design and coordination of MEP discipline capabilities, is a one of our biggest strengths. We are excited about being part of Tutor Perini Corporation and believe our combined capabilities will serve our customers very well in the future."
Ronald N. Tutor, Chairman and CEO of Tutor Perini, said: "GreenStar is one of the largest specialty contractors in the United States and represents our expansion in the Northeastern markets. Greenstar has a substantial resume of experience that complements our operations, and we in turn will be in a position to support their growth objectives as they continue to serve their clients."