Tutor Perini Corp., Sylmar, Calif., has purchased Fisk Electric Co. for $105 million in cash and an undetermined amount based on future results.
Privately held Fisk reported 2010 revenue of about $305 million and a $190-million project backlog, although both dropped this year. The firm has worked with Tutor Perini on several projects, including the $8.5-billion CityCenter in Las Vegas.
Based in Houston, Fisk will operate as a wholly owned Tutor Perini unit, with existing senior managers remaining in place.
Publicly owned Tutor Perini had $2.51 billion in revenue for the first nine months of 2010, down 38.3% from $4.07 billion a year prior, according to filings made to the U.S. Securities and Exchange Commission.
�This strategy increases the ability to self-perform work and therefore generates slightly higher margins on contracts,� says Avram Fisher, analyst with BMO Capital Markets, New York City.
Another industry observer speculates that the buyout, announced Jan. 4, �solves the problem� for Fisk CEO Larry Brookshire, of how to liquidate his assets in the form of company shares.