Tutor Perini Corp. acquired Frontier-Kemper and plans to acquire Lunda Corp., adding significantly to its market share in heavy and civil construction, especially in the Midwest. Tutor Perini says in a statement that it will pay $153.5 million for Lunda--$131.8 million in cash and $21.7 million in debt. In addition, Tutor Perini says there is a structured earnout based on profitability targets for three years. The transaction is scheduled to close July 1, 2011. Founded in 1938, Lunda Construction Co. is based in Black River Falls, Wisc. It has extensive experience in bridges and marine and railroad-related construction. The company’s plainly presented website
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.