Tutor Perini to acquire US contractor
By Helen Wright03 June 2011
Tutor Perini has signalled its expansion into the US Midwest market with a deal to acquire civil contractor Lunda Construction for US 154 million.
The company has signed a letter of intent to purchase 100% of Lunda's stock in a deal which would consist of US$ 132 million in cash and a US$ 22 million note payable in five years.
Headquartered in Black River Falls, Wisconsin, Lunda specialises in heavy construction of large civil structures including bridges, rail networks and dams. The company has a current order backlog worth US$ 400 million, and last year reported revenues of US$ 400 million.
Tutor Perini chairman and CEO Ronald Tutor said, "Lunda Construction is one of the most successful civil contractors in the US and represents our expansion into the Midwest markets. We will be in a position to support their growth objectives in their existing markets."
Lunda has six offices in Wisconsin and Minnesota and employs over 600 people. Tutor Perini said the company's name would not change after the acquisition, and Larry Lunda would remain president and CEO.
The transaction is expected to close on 1 July.