“Lunda Construction is one of the most successful civil contractors in the United States and represents our expansion into the Midwestern markets,” said Tutor Perini CEO Ronald Tutor. “They have a resume of experience which complements our operations, and we in turn will be in a position to support their growth objectives in their existing markets.”
Lunda was established in 1938 and carries out the construction, rehabilitation and maintenance of bridges, railways, dams and other civil structures in the Midwest and throughout United States. It has has over 600 employees and a current order book of approximately US$400m. Revenues were approximately US$400 million in fiscal year ended 31 December 2010. Tutor Perini is based in California and offers design and build and contracting services throughout the world.
Under the terms of the letter of intent, the purchase price for Lunda is expected to be US$153.5m (£94m), consisting of US$131.8m in cash at closing and US$21.7m in a note payable in five years, plus a structured amount based on profitability targets for three years following the closing date. The transaction is expected to close on 1 July.
Lunda will continue to operate under the current company name and will continue to be managed by its current senior management team, with Larry Lunda remaining as president and CEO.
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