Primoris Services Corporation Announces Strategic Investment in WesPac Energy LLC
July 01 2010 - 9:04AM
Primoris Services Corporation (Nasdaq:PRIM)
(Nasdaq:PRIMW) ("Primoris" or "Company") today announced that it
has completed a strategic investment in WesPac Energy LLC
("WesPac"), a general energy infrastructure developer, which the
company believes will broaden its exposure to a variety of
pipeline, terminal, and energy-related infrastructure opportunities
across North America. Primoris's investment totaled approximately
$18 million in cash in exchange for a 50% ownership interest in
WesPac.
Founded in 1998 and based in Irvine, California, WesPac has
extensive experience in developing pipeline and terminal projects
in the United States, Canada and Mexico. WesPac creates
long-term economic solutions for its customers and partners by
expanding or enhancing existing infrastructure, and supporting
supply-chain management, most notably in the areas of pipeline
transportation and storage inefficiencies. WesPac's project
portfolio includes:
- pipelines for petroleum products, crude oil, condensate, CO2,
LPG, and other energy-related transportation products;
- petroleum products terminals (primarily storage and
distribution) for transportation-type fuels, which normally include
related infrastructure to receive or deliver products by truck,
pipeline, rail, or ship. WesPac has extensive experience in
converting regional airport fuel supply systems from truck supply
programs to more efficient and environmentally-friendly pipeline
based systems; and
- energy related facilities development, including origination,
site selection, permitting, rights of way acquisition, conceptual
engineering, and project management.
Brian Pratt, Chairman, President and Chief Executive Officer of
Primoris, commented, "We believe this will be a synergistic
relationship and a long-term strategic investment for Primoris.
WesPac now has the ability to lever our 60 years of experience in
the construction of liquid transportation infrastructure, our
expanded national footprint, and our financial strength to capture
and help finance new opportunities. Primoris will be in
a position to benefit from a new stream of project opportunities
and the ability to work with a group of best-in-class professionals
with whom our various subsidiaries have successfully collaborated
for decades. WesPac is currently in the advanced stages of
pre-funding and pre-construction activities for several projects
that could present opportunities for Primoris and its subsidiaries
as soon as 2011."
Dave Smith, President of WesPac, stated, "Our track record of
successfully developing, financing and constructing transportation
and terminal related projects, combined with the energy
infrastructure experience of Primoris, will strengthen our market
presence by deepening the resources at our disposal and aligning
WesPac with a proven and trusted name. We believe that this
agreement with Primoris will elevate our industry profile and
provide us with the ability to expand our development
activities. We look forward to a long and mutually beneficial
relationship."
About Primoris
Primoris, through various subsidiaries, is one of the largest
specialty contractors and infrastructure companies in the United
States. Serving diverse end markets, Primoris provides a wide
range of construction, fabrication, maintenance and replacement
services, as well as engineering services to major public
utilities, petrochemical companies, energy companies,
municipalities and other customers. With the recent acquisition of
James Construction Group, Primoris has a significant presence in
the Gulf States region where it provides heavy civil construction
services. Primoris is also a leading water and wastewater
contractor in the state of Florida, and a specialist in designing
and constructing complex commercial and industrial concrete
structures in California. For additional information on Primoris,
please visit www.prim.com.
The Primoris Services Corporation logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5527
Forward-Looking Statements
This press release contains certain forward-looking statements,
including with regard to the Company's future performance. Words
such as "estimated," "believes," "expects," "projects," "may," and
"future" or similar expressions are intended to identify
forward-looking statements. Forward-looking statements
inherently involve risks and uncertainties, including without
limitation, those described in this press release and those
detailed in the "Risk Factors" section and other portions of our
Annual Report on Form 10-K for the year ended December 31, 2009 and
other filings with the Securities and Exchange Commission,
including the Company's Form 10-Q filed on May 10,
2010. Primoris does not undertake any 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.
CONTACT: Primoris Services Corporation
Peter J. Moerbeek, Executive Vice President, Chief Financial
Officer
(949) 454-7121
pmoerbeek@prim.com
The Equity Group Inc.
Devin Sullivan, Senior Vice President
(212) 836-9608
dsullivan@equityny.com
Gerrard Lobo, Senior Account Executive
(212) 836-9610
globo@equityny.com
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