• Advocate business staff
• Published: Nov 19, 2009 - UPDATED: 1:37 p.m.

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Primoris Services Corp. today announced that it has signed a $135 million deal to acquire Baton Rouge-based James Construction Group L.L.C., one of the largest privately owned construction companies in the Southeast.

The deal consists of $7 million in cash; a five-year $53.5 million promissory note with escalating interest of 5 percent to 8 percent; and shares of Primoris preferred stock valued at $64.5 million. The preferred stock will be automatically converted into shares of Primoris common stock after approval of Primoris shareholders.

The agreement also contains an incentive provision that could provide an additional $10 million of Primoris common stock based on James Construction Group attaining specified financial goals for the year ending Dec, 31, 2010. For the year ended Dec. 31, 2008, James Construction Group generated revenues of approximately $410 million and an operating profit of approximately $33 million.

Primoris expects that the transaction will be immediately accretive to its earnings per share.

James Construction Group was founded in 1998. The company has 1,700 employees and does business throughout the Gulf Coast. James Construction Group’s Heavy Civil Division performs road and bridge construction, airport runway and taxiway construction;,and marine facility construction. The Infrastructure & Maintenance Division provides clients with, among other services, earthwork and site development, landfill construction, site remediation, and mining support services. The Industrial Division, with a client base comprised primarily of private industrial companies, provides all phases of civil/structural, mechanical equipment erection and process pipe installation.

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