LAKE FOREST, Calif., Dec. 17, 2009 (GLOBE NEWSWIRE) -- Primoris Services Corporation (Nasdaq:PRIM) (Nasdaq:PRIMU) (Nasdaq:PRIMW) ("Primoris" or "Company"), one of the largest specialty contractors and engineering companies in the United States, today announced that it has recently acquired the Juniper Flats Quarry, an 88-acre rock quarry located in the western Riverside County area of Southern California for approximately $2.3 million in cash. Following the completion of the acquisition, the Company created Juniper Rock Corporation as a wholly-owned subsidiary for the purpose of producing and selling aggregates and other construction materials.
Aggregates are sand, gravel, and crushed stone which comprise approximately 70-80% of concrete, and 95% of asphalt mixtures according to the California Construction and Industrial Minerals Association (CalCIMA). CalCIMA estimates that every Californian uses about 5-7 tons per year of aggregates for housing, roads and highways, office buildings, schools, shopping centers, public infrastructure, and in a vast array of consumer, industrial, and agricultural products.
The quarry has an anticipated operational life of eight to ten years and is expected to yield approximately 6 million tons of aggregates and construction materials. At current pricing, the quarry would generate total revenues in excess of $35 million over its operational life.
Brian Pratt, Chairman, President and Chief Executive Officer of Primoris, commented, "We made this opportunistic acquisition while searching for the location for an operations yard. Since Juniper Rock is fully permitted to produce aggregates, we anticipate that this minimal capital investment, the quarry's location and its low operating expenses will provide a positive earnings contribution over the next few years."
About Primoris
Primoris, through various subsidiaries, is one of the largest specialty contractors and engineering companies in the United States, primarily serving the growing power and energy sectors. 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. 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.primoriscorp.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," 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, 2008 and other filings with the Securities and Exchange Commission, including the Company's Form 10-Q filed on November 12, 2009. 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.