Tutor Perini, a California-based civil and building construction company, has inked a Letter of Intent to buy 100% shares of Lunda Construction, a Wisconsin-based company. The deal is valued to be around $153.5 million.
Luanda is headquartered in Black River Falls, Wisconsin and has three functional divisions in Minnesota and Wisconsin. The company has more than 600 employees to manage its operations in 30 states across the US. It earned around $400 million as revenues in 2010 and has existing backlog of nearly $400 million.
The deal includes cash payment of around $131.8 million at closing of the transaction and $21.7 million in the form of note payable in a period of five years. A structured earn-out, based on future profitability objectives for a period of three years after the closing date, is also included in the contract. The proposed purchase may be changed based on the real net worth of the company at closing.
The deal will be finalized after taking the required regulatory and third party approvals. The transaction is anticipated to be closed on 1st July 2011.
Lunda Construction will continue to function under its existing name and will be controlled by its present management team.
Source: http://www.tutorperini.com/