Latest news with #RayWaddell
Yahoo
4 days ago
- Business
- Yahoo
Sterling Infrastructure to acquire CEC Facilities Group for $505m
E-infrastructure solutions specialist Sterling Infrastructure has agreed to acquire 'substantially all of the assets' of CEC Facilities Group, a US-based speciality electrical and mechanical contractor. The upfront deal consideration is $505m, with $450m payable in cash and $55m in Sterling common stock. The infrastructure services provider also highlighted an earn-out opportunity for CEC, based on the fulfilment of future operating income targets until December 2029. Engaged in non-union electrical services to mission-critical sectors, CEC will become part of Sterling's e-infrastructure solutions segment. The boards of directors of both companies have given unanimous clearance to the deal. The acquisition is slated for completion in the third quarter of 2025, contingent on standard closing conditions. Electrical services, which generated more than 80% of CEC's 2024 revenue, are primarily delivered to high-growth markets such as semiconductors, manufacturing, and data centres. This acquisition will enable Sterling to enhance its e-infrastructure services, offering a broader range of services to cover the entire project lifecycle, along with presenting significant cross-selling opportunities. Sterling aims to leverage its track record in the data centre market alongside CEC's semiconductor market presence. With CEC's operations spanning Texas and extending into other US regions, Sterling sees a 'compelling' financial profile with strong growth, margins, and cash flow. CEC's financial projections for 2025 include revenues between $390m and $415m, EBITDA between $51m and $54m, and an adjusted EPS accretion of $0.63 to $0.70 per fully diluted share. These estimates take into account the share issuance for the acquisition, the cash purchase price, a 26% tax rate, and exclude purchase-accounting adjustments. Post-acquisition, CEC's founder and chairman Ray Waddell will assume a strategic role to drive growth within Sterling's electrical services platform. CEO Daniel Williams will continue heading CEC's operations. The deal is accretive to Sterling's capital investment returns and is stated to offer a platform for organic growth and further mergers and acquisitions. Sterling CEO Joe Cutillo said: "We believe that the combination of CEC's leading mission-critical electrical services and Sterling's best-in-class site civil infrastructure services will allow us to accelerate project timelines and become even more valuable to our customers. We welcome CEC to our team and believe their strong values, commitment to customers, and entrepreneurial spirit align perfectly with Sterling." Waddell commented: "As we celebrate 16 years since founding CEC, I'm incredibly proud of what our team has built—driven by our values, our people, and a relentless pursuit of excellence. "From day one, we've reinvested in our company and in our people - believing that long-term success comes from building talent, trust, and a culture of performance. This combination with Sterling adds a valuable element to their e-Infrastructure strategy - amplifying their momentum with CEC's deep expertise in semiconductors, data centres, and mission-critical environments. The opportunities ahead are extraordinary, and we're just getting started." "Sterling Infrastructure to acquire CEC Facilities Group for $505m" was originally created and published by World Construction Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
06-05-2025
- Business
- Yahoo
EY US unveils Ray Waddell of CEC Facilities Group as an Entrepreneur Of The Year® 2025 Southwest Award finalist
Entrepreneur Of The Year celebrates ambitious entrepreneurs who are shaping the future DALLAS, May 6, 2025 /PRNewswire/ -- Ernst & Young LLP (EY US) announced the finalists for the prestigious Entrepreneur Of The Year 2025 Southwest Award. Now in its 40th year, the Entrepreneur Of The Year program celebrates the bold leaders who disrupt markets through the world's most ground-breaking companies, revolutionizing industries and making a profound impact on communities. The program honors bold entrepreneurs whose innovations shape the future and pave the way for a thriving economy and a hopeful tomorrow. EY Entrepreneur Of The Year Finalist An independent panel of judges selected Ray Waddell among the CEOs and founders representing 42 companies for their entrepreneurial spirit, purpose, growth and lasting impact in building long-term value. "CEC was born from a desire to build something bigger than myself, a 100-year company that would continue to serve others long after I'm gone. Leadership has always been part of who I am, first on the court as a point guard, then in business," said Waddell. "Being named a finalist is a tremendous honor. We've created a company grounded in integrity and I hope CEC continues building a legacy that supports families, develops leaders, and endures for generations to come." CEC Facilities Group is one of the fastest-growing industrial services companies in the region, built on grit, innovation, and a drive to do things differently. From powering mission critical data centers to shaping the future of healthcare and commercial infrastructure, CEC tackles complex work across electrical, mechanical, prefabrication, and design-build services with quality and scale that speak for themselves. In response to the growing skilled labor shortage across the trades, CEC launched CEC University—a hands-on training and development program designed to grow talent from within. It's more than workforce development, it's a long-term investment in people, careers, and the future of the industry. By building its own talent pipeline, CEC is taking control of its growth trajectory while creating opportunity for the next generation of skilled professionals. Entrepreneur Of The Year honors business leaders for their ingenuity, courage and entrepreneurial spirit. The program celebrates original founders who bootstrapped their business from inception or who raised outside capital to grow their company; transformational CEOs who infused innovation into an existing organization to catapult its trajectory; and multigenerational family business leaders who reimagined a legacy business model to strengthen it for the future.
