• Primoris Services Corp (NASDAQ: PRIM) has agreed to acquire PLH Group, Inc. for $470 million in cash.

• PLH Group is a utility-focused specialty construction company with a concentration in key fast-growing regions of the U.S.

• This transaction doubles the Power Delivery business and increases PRIM's Utilities segment to over 50% of pro forma revenue. The acquisition accelerates PRIM's ongoing portfolio transition towards higher-growth, higher-margin markets and recurring Master Service Agreement (MSA) revenue.

• Primoris expects double-digit EPS accretion within 12 months with material cost and revenue synergies. It expects annual cost savings of at least $10 million within 24 months of the deal's closing.

• "This acquisition aligns solidly with our strategic focus on higher-growth, higher-margin business segments. It expands our footprint for Power Delivery services at a time when improvement and expansion of our domestic electric grid is driving massive capital investment in this market," stated Primoris CEO Tom McCormick.

• For the 12 months ended May 31, 2022, PLH generated total revenue of $733 million and a total adjusted EBITDA of $54 million.

• Primoris plans to fund the acquisition through borrowings under its existing credit agreement. Certain members of the existing lender group have committed to providing $425 million of incremental term loans.

• As of March 31, 2022, PRIM held $178.6 million of cash and equivalents.

• The transaction is expected to close in the third quarter of 2022.

• Price Action: PRIM shares are trading higher by 2.50% at $24.20 on the last check Monday.

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