Perini Plans to Purchase Local Builder

MIAMI-Perini Corp. is expanding into the Southeast region with the planned acquisition of James A. Cummings Inc., a privately-held construction company based in Fort Lauderdale. Framingham, MA-based Perini, a publicly traded company specializing in building, civil construction and construction management, has signed a definitive agreement to acquire 100% of James A. Cummings Inc.’s stock for $20 million in cash, subject to terms and conditions, including lender approval.

James A. Cummings Inc., which builds schools, public and commercial facilities, has annual revenue of approximately $100 million and more than 300 employees in the Southeast region.

Under the agreement, James A. Cummings Inc. will operate as a wholly owned subsidiary of Perini Corp. and will be managed by its senior management team. James A. Cummings will be CEO of James A. Cummings Inc. and will become a director of Perini Corp., which has annual revenue in excess of $1 billion.

William R. Derrer will serve as president, and Michael Lanciault will be senior VP and chief estimator of James A. Cummings Inc. Ronald N. Tutor, Perini’s chairman and CEO, says in a statement that the acquisition would expand the company’s market presence in the Southeast and “support Perini’s strategy to achieve profitable growth.”

By joining with Perini, James A. Cummings Inc. will expand the capabilities it can offer to its shared client base and create opportunities for growth and professional development for employees, James A. Cummings states.

Tutor adds that James A. Cummings Inc. “meets every one of our stringent qualifications for a potential acquisition. It has a track record of profitable operations.”

He also notes that the newly acquired firm “has a growth-oriented management team that wants to stay and continue to build the company. It expands our physical footprint and brand in a marketplace that is rich with opportunities for growth.”

Perini Corp. expects the transaction to be financed through an increase in capacity under the company’s existing credit agreement.