Perini Corporation Enters into Letter of Intent to Acquire Rudolph and Sletten, Inc.; Acquisition Supports Perini's Expansion in
August 11 2005 - 11:00AM
Business Wire
Perini Corporation (NYSE:PCR), a leading building, civil
construction and construction management company, today announced
that it has a signed letter of intent to acquire Rudolph and
Sletten, Inc., a privately held construction and construction
management company. Based in Redwood City, Calif., and covering the
major construction markets of Los Angeles, Silicon Valley, San
Francisco and Sacramento, Rudolph and Sletten, Inc. has grown since
its founding over 46 years ago to become the 32nd largest domestic
general building contractor with revenues and backlog of
approximately $700 million and $1.5 billion respectively for the
fiscal year ended September 30, 2004. Licensed to provide
construction services in California, Arizona, Nevada, Washington,
Colorado, Idaho, Oklahoma and Texas, Rudolph and Sletten, Inc. has
a history of successfully completed corporate campuses, biotech and
pharmaceutical, healthcare, institutional and high-tech projects.
Under the terms of the proposed transaction, subject to due
diligence, Perini plans to acquire 100% of the company's stock for
$50 million in cash plus an amount to be determined based on actual
fiscal year 2005 operating results through the anticipated
September 2005 closing date. The transaction is subject to
execution and delivery of a definitive acquisition agreement and
other customary conditions, including approval of Perini's lenders.
Following completion of the transaction, Rudolph and Sletten, Inc.
is expected to operate as a wholly owned subsidiary of Perini
Corporation and would be managed by its current senior management
team. "We are very pleased to announce this proposed transaction,
which will expand our building construction market presence in
California and the entire Pacific and Southwest regions. We expect
to realize significant synergy from the proposed acquisition by
deploying Rudolph and Sletten's resources in the regional gaming
and hospitality markets in California and other locations," said
Ronald N. Tutor, Perini's Chairman and CEO. "Rudolph and Sletten,
Inc. brings with it a strong corporate culture which values
personal relationships with an excellent reputation for delivering
the highest quality work on schedule and within budget. Rudolph and
Sletten, Inc.'s reputation for honest estimates, innovative methods
and its ethical way of doing business mirror many of the same
values that are cornerstones at Perini." Rudolph and Sletten, Inc.
employs over 1,000 people in California. Perini Corporation expects
that the transaction will be financed through the use of cash on
hand and expanded borrowing capacity. About Perini Corporation
Perini Corporation is a leading construction services company
offering diversified general contracting, construction management
and design-build services to private clients and public agencies
throughout the world. We have provided construction services since
1894 and have established a strong reputation within our markets by
executing large complex projects on time and within budget while
adhering to strict quality control measures. We offer general
contracting, preconstruction planning and comprehensive project
management services, including the planning and scheduling of the
manpower, equipment, materials and subcontractors required for a
project. We also offer self-performed construction services
including sitework, concrete forming and placement and steel
erection. We are known for our hospitality and gaming industry
projects, sports and entertainment, educational and healthcare
facilities as well as large and complex civil construction projects
and construction management services to U.S. military and
government agencies. The statements contained in this Release that
are not purely historical are forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934, including without
limitation, statements regarding the Company's expectations, hopes,
beliefs, intentions or strategies regarding the future. These
forward-looking statements are based on the Company's current
expectations and beliefs concerning future developments and their
potential effects on the Company. There can be no assurance that
future developments affecting the Company will be those anticipated
by the Company. These forward-looking statements involve a number
of risks, uncertainties (some of which are beyond the control of
the Company) or other assumptions that may cause actual results or
performance to be materially different from those expressed or
implied by such forward-looking statements. These risks and
uncertainties include, but are not limited to, the successful
completion of the acquisition of Rudolph and Sletten, Inc.; the
potential delay, suspension, termination or reduction in scope of a
construction project; the continuing validity of the underlying
assumptions and estimates of total forecasted project revenues,
costs and profits and project schedules; the outcomes of pending or
future litigation, arbitration or other dispute resolution
proceedings, including the possible settlement of the litigation
with holders of the Company's $21.25 Preferred Stock; the
availability of borrowed funds on terms acceptable to the Company;
the ability to retain certain members of management; the ability to
obtain surety bonds to secure its performance under certain
construction contracts; possible labor disputes or work stoppages
within the construction industry; changes in federal and state
appropriations for infrastructure projects; possible changes or
developments in worldwide or domestic political, social, economic,
business, industry, market and regulatory conditions or
circumstances; and actions taken or not taken by third parties,
including the Company's customers, suppliers, business partners and
competitors and legislative, regulatory, judicial and other
governmental authorities and officials. The Company undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as may be required under applicable securities
laws.
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