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

Washington closes out last big position in Wall Street bailoutWashington closes out last big position in Wall Street bailout
WASHINGTON (Reuters) - The United States closed out its last big investment taken on during a 2008 bailout of U.S. banks and automakers, selling its remaining shares in the former financing arm of Gen...
Citi buys Credit Suisse commodities trading bookCiti buys Credit Suisse commodities trading book
LONDON (Reuters) - Citigroup <C.N> has bought the commodity trading books of Credit Suisse <CSGN.VX>, sources familiar with the matter said on Friday, as the U.S. bank extends its reach in...
North Korea behind Sony hack, with possible China link: U.S. officialNorth Korea behind Sony hack, with possible China link: U.S. official
WASHINGTON (Reuters) - A U.S. investigation into the hack of Sony`s computer system has determined that North Korea was behind the operation with a possible Chinese link, a U.S. official said on Frida...
U.S. expected to formally blame North Korea for Sony cyberattackU.S. expected to formally blame North Korea for Sony cyberattack
WASHINGTON (Reuters) - U.S. authorities were expected to announce on Friday that investigators had determined that North Korea was behind a devastating cyberattack against Sony Pictures, setting up ...
Consumers can sue Target Corp over data breach: judgeConsumers can sue Target Corp over data breach: judge
(Reuters) - A U.S. judge has cleared the way for consumers to sue Target Corp over the retailer`s late 2013 data breach that they say compromised their personal financial information. U.S. Distric...

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.

Algorithm Based
Trade Signals
arrow
small cap swing trades SmallCaps stocks under $10
Index Signals Index Signals SPY, QQQ, DIA, IWM
options trading Mega Stocks options + stock trade signals
Forex Forex Signals major FX pairs signals