Primoris Services Corp Acquires Sprint Pipeline Services, L.P.

Primoris Services Corp announced that it has acquired Sprint Pipeline Services, L.P. (Sprint). Based in Pearland (Houston), Texas, Sprint provides a comprehensive range of pipeline construction, maintenance, upgrade, fabrication and specialty services primarily in the southeast United States. Total consideration was approximately $28 million, $20 million of which was paid at closing and consisted of 62,052 shares of Primoris common stock, valued at $1 million, and $19 million in cash. Incentive provisions, which take into account Sprint’s financial performance over the past several years, could provide additional cash consideration totaling $8 million based on Sprint achieving the following EBITDA (as that term is defined in the asset purchase agreement) targets: $7 million for the period March 12, 2012 through December 31, 2012 would result in cash payment of $4 million to the Sellers; and $7.75 million for the calendar year 2013 would result in an additional $4 million cash payment to the Sellers. Sprint will operate as a wholly-owned subsidiary of Primoris as part of the East Construction Services segment. Robert Grimes and Jon Johnson, Sprint’s Managing Partners, have signed employment agreements with Primoris and will continue to operate the business.