Sterling Infrastructure to acquire CEC Facilities Group for $505m
E-infrastructure solutions specialist Sterling Infrastructure has agreed to acquire 'substantially all of the assets' of CEC Facilities Group, a US-based speciality electrical and mechanical contractor.
The upfront deal consideration is $505m, with $450m payable in cash and $55m in Sterling common stock.
The infrastructure services provider also highlighted an earn-out opportunity for CEC, based on the fulfilment of future operating income targets until December 2029.
Engaged in non-union electrical services to mission-critical sectors, CEC will become part of Sterling's e-infrastructure solutions segment.
The boards of directors of both companies have given unanimous clearance to the deal. The acquisition is slated for completion in the third quarter of 2025, contingent on standard closing conditions.
Electrical services, which generated more than 80% of CEC's 2024 revenue, are primarily delivered to high-growth markets such as semiconductors, manufacturing, and data centres.
This acquisition will enable Sterling to enhance its e-infrastructure services, offering a broader range of services to cover the entire project lifecycle, along with presenting significant cross-selling opportunities.
Sterling aims to leverage its track record in the data centre market alongside CEC's semiconductor market presence.
With CEC's operations spanning Texas and extending into other US regions, Sterling sees a 'compelling' financial profile with strong growth, margins, and cash flow.
CEC's financial projections for 2025 include revenues between $390m and $415m, EBITDA between $51m and $54m, and an adjusted EPS accretion of $0.63 to $0.70 per fully diluted share.
These estimates take into account the share issuance for the acquisition, the cash purchase price, a 26% tax rate, and exclude purchase-accounting adjustments.
Post-acquisition, CEC's founder and chairman Ray Waddell will assume a strategic role to drive growth within Sterling's electrical services platform. CEO Daniel Williams will continue heading CEC's operations.
The deal is accretive to Sterling's capital investment returns and is stated to offer a platform for organic growth and further mergers and acquisitions.
Sterling CEO Joe Cutillo said: "We believe that the combination of CEC's leading mission-critical electrical services and Sterling's best-in-class site civil infrastructure services will allow us to accelerate project timelines and become even more valuable to our customers. We welcome CEC to our team and believe their strong values, commitment to customers, and entrepreneurial spirit align perfectly with Sterling."
Waddell commented: "As we celebrate 16 years since founding CEC, I'm incredibly proud of what our team has built—driven by our values, our people, and a relentless pursuit of excellence.
"From day one, we've reinvested in our company and in our people - believing that long-term success comes from building talent, trust, and a culture of performance. This combination with Sterling adds a valuable element to their e-Infrastructure strategy - amplifying their momentum with CEC's deep expertise in semiconductors, data centres, and mission-critical environments. The opportunities ahead are extraordinary, and we're just getting started."
"Sterling Infrastructure to acquire CEC Facilities Group for $505m" was originally created and published by World Construction Network, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business of Fashion
an hour ago
- Business of Fashion
Salomon and Arc'teryx Help Amer Sports Defy Downturn With Athleisure Bet
In 2020, Carlo Aragon started the 'Salomonology' Instagram page as a fashion moodboard to help him decide whether to invest $150 in a pair of Salomon XT-6s. He bought it, liking how the shoes looked 'unorthodox.' Others did too — the account now has almost 150,000 followers, intrigued by how trail shoes can pair with streetwear. Aragon's Instagram fame mirrors the ascent of Amer Sports Inc., the company behind Salomon. Since its New York Stock Exchange debut in February 2024, the Helsinki-based group, which also owns outerwear brand Arc'teryx and sports equipment maker Wilson, has nearly tripled its market value to $21 billion. It has outpaced peers like On Holding AG, Hoka parent company Deckers Outdoor Corp. and Anta Sports Products Ltd., the Chinese sporting goods giant that owns a 42% stake in Amer Sports. Amer Sports' growth has beaten the consumer downturn by riding the outdoor activity wave. It's among the mid-tier luxury brands offering shoppers high-quality goods that don't break the bank. The bulk of this rally occurred recently, following first-quarter results that defied a rocky global economy. Sales topped expectations, and the company raised its outlook while others cut theirs. Growth of its Technical Apparel and Outdoor Performance divisions — which respectively house Arc'teryx and Salomon — boosted results, Chief Executive Officer James Zheng said in the most recent earnings call, highlighting the brands' potential. While Salomon sneakers surpassed $1 billion in sales in 2024, it's a fraction of the $180 billion global sneaker market, and Arc'teryx is 'very under-penetrated globally,' he said in the call. Amer Sports declined a request for an interview with an executive. Reversal of fortunes Amer Sports wasn't always this successful. Shares remained subdued after the IPO due to high debt, low trading volume, and significant exposure to a lagging Chinese economy, said Laurent Vasilescu, an analyst at BNP Paribas Exane, who rates the stock outperform. Then in December, Amer Sports issued shares to pay down most of its debt. This move reduced leverage and boosted trading volume, alleviating two of the three primary investor concerns, Vasilescu said in an interview. China, which accounts for about 30% of the company's revenue, remains a concern, though sales in the market have bested expectations every quarter since the IPO. Premium sportswear and outdoor market gear is one of the fastest-growing consumer segments in China, attracting younger and female consumers, as well as luxury shoppers, Chief Financial Officer Andrew Page said on the earnings call. Glamping — short for glamorous camping — and gorpcore – wearing outdoor clothes as everyday wear – are currently trending in China, Vasilescu said. Amer Sports is also attracting middle- and upper-income customers who like the 'quiet luxury' aesthetic and the upscale in-store shopping experience of its brands, he added. That's happening in the US too, where celebrities like Timothée Chalamet and Bella Hadid have been spotted wearing Salomon shoes. Sales in its Americas division have grown every year since 2020 – the earliest publicly available results – though at a slower pace than Greater China's, which is estimated to overtake Europe, the Middle East and Africa as Amer Sports' second-largest market by revenue this year. One fan is Gabriella Gonzalez, a 29-year-old stylist who popped by a Salomon store in New York City's SoHo shopping district on a Friday afternoon. She praised the breathability, waterproofing and style of her pink-and-black XT-6 shoes. 'They make my outfits pop,' she said. About half a mile away is Arc'teryx's largest US store. Customer Chris Rojes said he doesn't mind paying more for Arc'teryx's gear over other brands. 'You feel more special in them.' Arc'teryx distinguishes itself from other outdoor apparel brands like Patagonia Inc. and VF Corp's The North Face through a 'much higher level of premiumization,' said TD Cowen analyst John Kernan, who has a buy rating on Amer Sports. Despite higher prices, consumers are willing to pay for Arc'teryx's 'leading innovation.' Declining consumer brand loyalty and a growing desire for variety also creates an opportunity for Salomon and Arc'teryx to gain market share from industry leaders like Nike Inc. and Adidas AG, Vasilescu said. To keep flying high, Amer Sports needs to go global, analysts said, warning that it's an uphill battle. 'We believe that the global brand rollout will not be easy' due to Arc'teryx's high price points and intense competition in Western outerwear markets, said HSBC analyst Akshay Gupta, who has a hold rating on the company. Morningstar analyst Ivan Su, who has a sell rating, believes Amer Sports' would need a compound annual growth rate of 20% over the next five years to support its currently high valuation, which would require 'near flawless execution' globally. By Rachel Phua and Rachel Yeo Learn more: Amer Sports Raises 2025 Guidance on Strong Demand for Arc'teryx and Salomon Footwear Shares of the athletic apparel and equipment maker hit an all-time high on Tuesday.
Bloomberg
an hour ago
- Bloomberg
China's Envoy Urges Australia to Resist US Pressure on Military Spending
China's envoy to Canberra urged Australia not to be 'incited' by NATO's support for US demands to sharply raise defense spending and instead cooperate with Beijing to resolve regional disputes. Ambassador Xiao Qian, in an opinion article published in The Australian newspaper Monday, wrote that both Australia and China rely on the same trade routes and have a major stake in safeguarding maritime security. He emphasized their roles as key trade partners with 'highly complementary' economies.
Business Wire
3 hours ago
- Business Wire
MITER Brands Announces Sale of Eze-Breeze Porch Enclosures
HARRISBURG, Pa.--(BUSINESS WIRE)-- MITER Brands, a leading provider of high-quality windows and doors, is pleased to announce the sale of its Eze-Breeze Porch Enclosures brand to Bob Keller, the current President of Eze-Breeze, in partnership with Jewell Hollow LLC and its Managing Partner, Zach Coopersmith. Eze-Breeze, a market-leading and trusted name in the porch enclosure market, was started in 1980 by current MITER Brands board member Rod Hershberger and will now operate as an independent entity under the ownership of Keller and Coopersmith. The sale reflects the commitment of MITER Brands to streamline its business operations and concentrate resources on its core products and brands. This divestiture will enable MITER Brands to more effectively and efficiently allocate resources to increase production capacity in its other Florida-based window and door facilities, supporting its commitment to manufacturing the finest products, services, and customer experiences every day, everywhere. 'We are incredibly pleased that Eze-Breeze is being acquired by Bob Keller, whose expertise and vision align perfectly with the brand," said Ali Zahrieh, Senior Vice President of Strategy and M&A with MITER Brands. 'This transaction allows MITER Brands to further focus on our glass window and door products and related technologies while ensuring that Eze-Breeze is provided the dedicated attention needed for the brand to thrive." "I am excited to lead Eze-Breeze into a new era, with a focus on expanding the brand and fostering growth opportunities for our team and partners,' shared Keller. 'With support from my partner Zach Coopersmith, Managing Partner of Jewell Hollow LLC, our dedicated team is looking forward to strengthening the long-standing relationships with our trusted dealers and collaborating to advance their businesses and the Eze-Breeze brand." 'Bob has been a respected leader within the building products industry for decades, and having worked closely with him since 2016, I have seen firsthand the vision, focus, flexibility, integrity, and inspiration he provides to a team,' added Rod Hershberger, MITER Brands board member. 'Eze-Breeze was the original product brand that I helped bring to the market back in 1980, and it has been enhancing the lives of homeowners ever since. I'm thrilled to see Bob leading it into its next chapter, and I am excited for the future of the Eze-Breeze brand and team with him at the helm.' About MITER Brands Founded in 1947, MITER Brands is a residential window and door manufacturer that produces a portfolio of window and door brands for the new construction and replacement segments with an owner-operated, family-first approach. With more than 20 manufacturing facilities throughout the United States, MITER Brands is a nationwide supplier of precision-built and energy-efficient products. Through optimized manufacturing, valued relationships, and dedicated team members coast to coast, MITER Brands instills confidence and drives quality customer experiences. For more information, visit About Eze-Breeze Eze-Breeze, established in 1980, is the leading manufacturer of innovative porch and patio enclosure systems, proudly made in the USA. With a strong reputation for quality, flexibility, and ease of installation, Eze-Breeze products help homeowners and builders create versatile, comfortable outdoor living spaces. Committed to customer satisfaction and dealer success, Eze-Breeze combines industry expertise with a family-oriented approach to deliver solutions that enhance the way people enjoy their homes. For more information, visit About Jewell Hollow Jewell Hollow is an investment firm that partners with exceptional operators and founders of private companies across a wide range of industries. With flexible, creative capital solutions, Jewell Hollow invests across the capital structure—including debt and equity, minority or majority positions—tailoring each investment to fit the needs of its partners. The firm backs visionary teams with an 'operator-first' philosophy at its core. Above all, Jewell Hollow is built around people. It is driven by a deep respect for legacy, aligned partnerships, and the belief that great businesses are shaped by the strength of those who lead them.
