Primoris Services Corporation to Acquire PayneCrest Electric, Inc., Expanding Electrical Capabilities

Core Viewpoint - Primoris Services Corporation has announced the acquisition of PayneCrest Electric, Inc. for $422 million, aiming to enhance its electrical capabilities and expand into the high-growth data center services market [1][2]. Acquisition Details - The acquisition is valued at $422 million, with $400 million financed through borrowings under an amended credit agreement [5]. - The transaction has been unanimously approved by Primoris' Board of Directors and is expected to close in the second quarter of 2026, pending regulatory approvals [5]. Financial Impact - For the full year 2026, PayneCrest is projected to generate total revenue between $350 million and $370 million, with adjusted EBITDA estimated at $38 million to $42 million [2]. - Primoris expects the acquisition to contribute between $260 million and $280 million in revenue and $28 million to $32 million in adjusted EBITDA for the same year [2]. Company Background - PayneCrest Electric, Inc. is a leading electrical construction and services provider with over 70 years of experience, specializing in complex electrical installations across various sectors [3][8]. - Primoris Services Corporation is a major provider of critical infrastructure services in the utility, energy, and renewables markets across the U.S. and Canada, offering a range of engineering, construction, and maintenance capabilities [7]. Strategic Fit - The acquisition is seen as a strategic move to integrate Primoris' industrial and renewables businesses with PayneCrest's electrical construction capabilities, enhancing geographic footprint and service offerings [4]. - Both companies' leadership expressed optimism about the cultural fit and the potential for growth and enhanced resources following the merger [4].