Centuri Group to Acquire Riggs Distler, Strengthening the Company’s Position as a Leader in Utilities Infrastructure Services in North America
PHOENIX, June 29, 2021 / PRNewswire / – Centuri Group, Inc. (“Centuri”), a wholly-owned subsidiary of Southwest Gas Holdings, Inc. (NYSE: SWX), today announced that it has entered into a definitive agreement to acquire Riggs Distler & Company, Inc. and its affiliates (“Riggs Distler“). Founded in 1909, and based in Cherry Hill, New Jersey, Riggs Distler has extensive relationships and long-term Master Service Agreements (MSA) with nearly all major investor-owned electric utilities in the North East and Mid Atlantic regions and provides service to ‘unionized installation and repair to its utility customers.
The addition of Riggs Distler provides Centuri with a strong union power platform and enables the Company to deliver new service offerings to combined utility customers. The acquisition expands Centuri’s geographic reach and union power platform with virtually no overlap in the existing customer base.
Paul M. Daily, President and CEO of Centuri, said: “Riggs Distler is an exceptional company with a seasoned and energetic management team and substantial growth opportunities in electrical services, renewable energy and 5G telecommunications. This is a transformational transaction for Centuri that adds a syndicated electrical services platform to our current utility infrastructure portfolio, significantly advancing our goal of meeting the growing needs of our customers by providing service to 360 degrees.
In addition to its turnkey solutions for utility providers, Riggs Distler is the only supplier in the region with a full range of civil, mechanical, electrical and manufacturing capabilities. Their addition to the Centuri business provides additional opportunities in 5G telecommunications and renewable energy production, further advancing both companies’ commitments to supporting clean energy delivery and reducing carbon emissions. As a long-standing member of the communities in which it operates, Riggs Distler established community engagement programs align with Centuri’s guiding principles and commitment to give back.
“Riggs Distler has established itself as the region’s premier utility contractor for over 100 years. We are excited about the way forward for the combined organization, which leads to an even brighter future with more career opportunities for our combined employees of over 10,500, ”Daily said.
Stephen Zemaitatis Jr., President and CEO of Riggs Distler, said: “We are proud to join Centuri, a company that shares our century-old core values of commitment to safety, operational excellence and the provision of high quality, competitive and essential services to customers. United, we will benefit from greater strength, growth and diversification. We look forward to deepening our relationships with our customers and creating meaningful opportunities for our employees within the Centuri family.
Pursuant to the transaction, Centuri will acquire a 100% interest in Riggs Distler for $ 855 million in cash subject to customary adjustments, including working capital. The cash purchase is expected to be fully funded by the new Centuri debt. The transaction is expected to close in the third quarter of 2021, after which Riggs Distler will operate as a stand-alone subsidiary of Centuri within the company’s Power group. M. Zemaitatis and the current Riggs Distler the management team will continue to run the business.
UBS Investment Bank served as exclusive financial advisor to Centuri, while Foley & Lardner, LLP served as legal advisor to Centuri on the transaction. Morrison & Foerster LLP served as legal counsel to Southwest Gas Holdings. Harris williams & Co. acted as financial advisor to Riggs Distler and Kirkland & Ellis LLP as legal counsel.
well Fargo has provided a debt financing commitment for new senior secured credit facilities to fund the entire purchase price and to refinance existing debt.
About Centuri Group, Inc.
Centuri is a full service utility infrastructure company dedicated to providing a wide range of solutions to North America gas and electricity suppliers. Through wise investments, shared services, and an unwavering commitment to the safety of our employees and the communities we serve, Centuri supports the performance of its operating companies across the United States and Canada.
About Riggs Distler & Co., Inc.
Founded in 1909, Riggs Distler self-execute turnkey union building solutions in the utility, telecommunications and industrial markets in the North East and Central Atlantic regions.
SOURCE Centuri Group, Inc.