Orion Group Holdings, Inc. (NYSE:ORN) (“Orion” or the “Company”)
announced today the acquisition of Tony Bagliore Concrete, Inc.
(“TBC”) for $6 million in cash. Founded in 2010, TBC is a
full-service concrete contractor that provides turnkey services
covering all phases of commercial concrete construction in Central
Texas. In addition to the upfront purchase price, the sellers
have an opportunity to earn an additional $2 million over a three
year period based on achievement of certain financial
targets.
Through 200 dedicated employees, TBC specializes
in tilt-wall construction, parking structures, concrete slabs for
commercial and institutional applications, curbs, gutters and
paving, among other capabilities. TBC currently operates in the
Austin, Texas metropolitan area with full year 2016 revenue of
approximately $32 million and full year 2016 EBITDA of
approximately $2.5 million. TBC currently has a $40 million
backlog of work under contract.
“TBC is a proven concrete contractor with a
strong reputation for quality, safety and reliability in the
greater Austin-area market, which is a market we have targeted for
entry,” stated Mark Stauffer, Orion Group Holding’s President and
Chief Executive Officer. “The Central Texas market continues
to experience tremendous growth in nonresidential construction as a
result of significant population changes. Population in the
Central Texas area is expected to more than double by 2050, with
significant development along the I-35 corridor from San Antonio
through Austin to Waco.”
Mr. Stauffer continued, “TBC provides an entry
for our TAS business to move into the Central Texas market and will
serve as a platform for future growth. We will rebrand TBC as
TAS Commercial Concrete and operate under one common brand for our
commercial concrete segment. As a result, we expect TBC to
provide additional growth for our TAS Commercial Concrete segment,
which has performed extremely well for us since our acquisition of
TAS in August 2015. Additionally, we believe TBC will be
neutral to slightly accretive to our 2017 earnings.”
About Orion Group Holdings
Orion Group Holdings, Inc., a leading specialty
construction company, serving the building, infrastructure and
industrial sectors in the continental United States, Alaska, Canada
and the Caribbean Basin through its heavy civil marine construction
segment and its commercial concrete segment. The Company’s heavy
civil marine construction segment services includes marine
transportation facility construction, marine pipeline construction,
marine environmental structures, dredging of waterways, channels
and ports, environmental dredging, design, and specialty services.
Its commercial concrete segment provides turnkey concrete
construction services including pour and finish, dirt work, layout,
forming, rebar, and mesh across the light commercial, structural
and other associated business areas. The Company is headquartered
in Houston, Texas with regional offices throughout its operating
areas.
Forward-Looking Statements
The matters discussed in this press release may
constitute or include projections or other forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995, the provisions of which the Company is availing
itself. Certain forward-looking statements can be identified by the
use of forward-looking terminology, such as 'believes', 'expects',
'may', 'will', 'could', 'should', 'seeks', 'approximately',
'intends', 'plans', 'estimates', or 'anticipates', or the negative
thereof or other comparable terminology, or by discussions of
strategy, plans, objectives, intentions, estimates, forecasts,
outlook, assumptions, or goals. In particular, statements regarding
future operations or results, including those set forth in this
press release and any other statement, express or implied,
concerning future operating results or the future generation of or
ability to generate revenues, income, net income, profit, EBITDA,
EBITDA margin, or cash flow, including to service debt, and
including any estimates, forecasts or assumptions regarding future
revenues or revenue growth, are forward-looking statements. Forward
looking statements also include estimated project start date,
anticipated revenues, and contract options which may or may not be
awarded in the future. Forward looking statements involve
risks, including those associated with the Company's fixed price
contracts that impacts profits, unforeseen productivity delays that
may alter the final profitability of the contract, cancellation of
the contract by the customer for unforeseen reasons, delays or
decreases in funding by the customer, levels and predictability of
government funding or other governmental budgetary constraints and
any potential contract options which may or may not be awarded in
the future, and are the sole discretion of award by the customer.
Past performance is not necessarily an indicator of future results.
In light of these and other uncertainties, the inclusion of
forward-looking statements in this press release should not be
regarded as a representation by the Company that the Company's
plans, estimates, forecasts, goals, intentions, or objectives will
be achieved or realized. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date hereof. The Company assumes no obligation to update
information contained in this press release whether as a result of
new developments or otherwise.
Please refer to the Company’s Annual Report on
Form 10-K, filed on March 24, 2017, which is available on its
website at www.oriongroupholdingsinc.com or at the SEC’s website at
www.sec.gov, for additional and more detailed discussion of risk
factors that could cause actual results to differ materially from
our current expectations, estimates or forecasts.
Orion Group Holdings Inc.
David Griffith, Investor Relations Manager (713) 852-6582
Orion (NYSE:ORN)
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