Centuri Group, Inc., a wholly-owned subsidiary of Southwest Gas Holdings, Inc. (SWX), announced Tuesday it has entered into a definitive agreement to acquire Riggs Distler & Co., Inc. and its affiliates for $855 million in cash subject to customary adjustments, including working capital.
The all-cash purchase is expected to be fully funded by new Centuri debt. The transaction is expected to close in the third quarter of 2021.
Upon closure of the deal, Riggs Distler will operate as a standalone subsidiary of Centuri within the company’s Power Group. Riggs Distler President and CEO Stephen Zemaitatis and its senior leadership team will continue to lead the company.
Wells Fargo has provided a debt financing commitment for new senior secured credit facilities to fund the full purchase price and refinance existing indebtedness.
Riggs Distler has extensive relationships and long-term Master Service Agreements (MSA) with nearly all of the major investor-owned electric utilities in the Northeast and Mid-Atlantic regions and provides unionized installation and repair services to its utility customers.
The addition of Riggs Distler provides Centuri a strong union electric platform and allows it to provide new service offerings to combination utility customers. The acquisition expands Centuri’s geographic reach and union electric platform with virtually no overlap in existing customer base.
In addition to its turnkey solutions for utility providers, Riggs Distler is the only provider in the region with a full suite of civil, mechanical, electrical and fabrication capabilities.
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