(Source: Business Wire)
Argan, Inc. (NYSE AMEX: AGX) today announced that it has signed a letter of intent to purchase United American Steel Constructors, Inc. (Unamsco), a private company operating two wholly-owned subsidiaries, National Steel Constructors, LLC, and Peterson Beckner Industries. In 2008, Unamsco reported annual revenues of approximately $84 million and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of approximately $19 million. The proposed purchase price is approximately $50 million, to be structured as a combination of cash and stock.
Rainer Bosselmann, Chairman and Chief Executive Officer of Argan stated, "Unamsco is an attractive business with solid margins and we anticipate that its subsidiaries, with their long history in the construction business, will be complementary partners to our Gemma Power Systems subsidiary. In addition to traditional construction activities, National Steel and Peterson Beckner also focus on reducing the emissions produced by traditional coal fired power plants. The ability to provide clean air solutions through the installation of air quality control systems (AQCS), FGD systems and scrubbers, is a valuable asset in the engineering and construction space, particularly as environmental mandates gain additional support from the Federal Government."
"The management teams of Unamsco, National Steel and Peterson Beckner will continue to lead these companies, and strategically, we believe that the addition of these companies and their capabilities will enable us to further capitalize on new opportunities and expand our market share in the engineering and construction industry," Mr. Bosselmann concluded.
Chuck Beckner, Chairman of Unamsco, stated "the entire Unamsco team is pleased to join Argan and Gemma in expanding service offerings to our valued customers."
National Steel Constructors, with its Steel City Erecting Division, is one of the nation's leading steel erection and power industry construction companies providing installation of air cooled condensers, and turnkey air quality control systems (AQCS) required by various environmental mandates related to the power industry. National's power industry construction offerings include SCR and FGD systems and scrubbers, all capable of increasing the cleanliness of the emissions released by coal fired power plants.
