Tutor Perini acquires Frontier-Kemper

Tutor Perini announced on 2 June that a full acquisition of US-based Frontier-Kemper Constructors from Deilmann Haniel International Mining and Tunneling.

Under the terms of the transaction, Tutor Perini acquired 100 per cent of Frontier-Kemper's stock for approximately USD 61M in cash and assumed approximately USD 52M of debt, of which USD 35M was paid off at closing. Tutor Perini financed the transaction with proceeds from its senior note offering that closed in October 2010.

Frontier-Kemper will continue to operate under its current name and will be managed by its current senior management team, with W.D. Rogstad remaining as president and CEO.

Rogstad said: "We are eager to leverage Tutor Perini’s national presence and civil expertise to expand our reach and capture new opportunities.”

Frontier-Kemper currently has a backlog of approximately USD 300M. Current projects include part of a JV with Traylor Bros for Sound Transit’s University Link light rail extension in Seattle, and the Granite/Traylor/Frontier-Kemper JV? for the construction of the Eastside Access Queens Bored Tunnels in New York.

Ronald Tutor, chairman and CEO of Tutor Perini, said: "Frontier-Kemper is an ideal fit for our civil business and will significantly bolster our tunneling business in the United States and expand our reach into Canada."