Stock:
Symbol Lookup
Register | Login
...
History
...
...

Pre Market | Dow Jones | Gold | Newsletters | Learn


Granite - GVA - To Acquire Kenny Construction Company

Friday, December 28, 2012 1:44 PM
Granite Construction Incorporated (NYSE: GVA) announced that it has signed a definitive agreement to acquire Kenny Construction Company ("Kenny"), a national contractor and construction manager specializing in the power, tunnel, water and civil markets, for $130 million. Founded in 1927, Kenny is a privately-owned, Northbrook, Illinois-based company with approximately 425 employees. Kenny offers a comprehensive range of services related to power transmission and distribution, construction management, tunnels, trenchless and underground utilities and heavy-civil infrastructure. Kenny's revenues are projected to be $270 million for 2012 with approximately 50% of revenues associated with the power sector, 20% associated with tunneling-related work and 30% coming from water/underground and other heavy/civil related work. As of December 31, 2012, Kenny's backlog is projected to be approximately $390 million. "This acquisition is an important milestone for Granite as we continue to execute on our strategic plan to diversify, strengthen and grow our business," said James H. Roberts, Granite's president and chief executive officer. "The addition of Kenny's expertise in the power, tunnel and underground markets will significantly expand our presence in these key areas as well as enable us to leverage our capabilities and geographic footprint to take advantage of opportunities across the country." GVA - Transaction Under the terms of the definitive agreement, Granite will pay the purchase price of $130 million in cash at closing in exchange for 100% of the outstanding shares of Kenny. The purchase price is subject to adjustment for certain items, including any outstanding Kenny indebtedness. Granite will receive a tax "step up" in the assets of Kenny and its subsidiaries that is expected to provide future tax benefits to Granite. These benefits imply an effective purchase price of 5.0x Kenny's projected 2012 EBITDA. About Granite - GVA Granite (GVA) is one of the nation's leading infrastructure contractors and is member of the S&P 400 Midcap Index, the FTSE KLD 400 Social Index and the Russell 2000 Index. Through its wholly owned subsidiary, GVA is one of the nation's largest diversified heavy civil contractors and construction materials producers serving public- and private-sector clients nationwide. In addition, Granite has one of the oldest and most robust ethics and compliance programs in the industry. The Company has been recognized by the Ethisphere Institute as one of the World's Most Ethical Companies for the third year in a row.
PRINT

FREE Options Trading Lessons
I'll show you how to unlock HUGE Gains with Options Trading
Let's make 2014 the year you get RICH!

Latest Headlines

U.S. further delays final decision on Keystone XL pipelineU.S. further delays final decision on Keystone XL pipeline
WASHINGTON (Reuters) - The Obama administration further delayed its decision on the controversial Keystone XL pipeline project on Friday, with no conclusion now likely until after the U.S. mid-term ...
Exclusive: Biogen prices hemophilia drug on par with older therapiesExclusive: Biogen prices hemophilia drug on par with older therapies
(Reuters) - Biogen Idec Inc is pricing its newly approved long-acting hemophilia drug, Alprolix, to cost U.S. patients, and insurers, about the same per year as older, less convenient therapies whos...
Auto airbag maker Continental named in GM recall suitAuto airbag maker Continental named in GM recall suit
(Reuters) - Plaintiffs` lawyers are seeking to draw Continental Automotive Systems U.S., the maker of airbag systems in recalled General Motors Co <GM.N> vehicles, into litigation over an igni...
Audi expects to sell half million cars in China this yearAudi expects to sell half million cars in China this year
BEIJING (Reuters) - Volkswagen`s <VOWG_p.DE> luxury division Audi plans to sell about half a million cars this year in China, the world`s biggest auto market, and raise the number of its Chine...
Monte Paschi approves plan to increase cash call to 5 billion eurosMonte Paschi approves plan to increase cash call to 5 billion euros
MILAN (Reuters) - The board of Italian bank Monte dei Paschi di Siena <BMPS.MI> on Friday approved a proposal to boost the size of a share sale it is planning to 5 billion euros ($6.9 billion)...

Loading Headlines...
 

Stock Market

Track the stock market today with the latest news and information on all things investing! Watch your stocks perform throughout the day and watch the breaking stock market news.

Feedback | disclaimer | privacy policy

Stock Market News

The Stock Market is ever changing. Keep up on your stock market news.

Stock Market Newsletters

Read up on your favorite stock market newsletters.


Learn the Stock Market

Sharper your stock trading skills with our stock market education section.