Sterling Infrastructure to acquire CEC Facilities Group

Sterling Infrastructure (STRL) has signed a definitive agreement to purchase substantially all of the assets of Irving, Texas-based CEC Facilities Group, a specialty electrical and mechanical contractor. The upfront purchase price at closing totals $505M, consisting of $450M in cash and $55M in Sterling Common Stock. Additionally, CEC has an earn out opportunity contingent upon achieving certain operating income targets through December 31, 2029. The Boards of Directors of both companies have unanimously approved the transaction. CEC will join Sterling’s E-Infrastructure Solutions segment. The transaction is expected to close in Q3, subject to customary closing conditions including the expiration or termination of the waiting period under the Hart-Scott-Rodino Act. CEC delivers comprehensive design, engineering, installation, and maintenance services for complex electrical infrastructure across high growth sectors. Electrical services accounted for over 80% of CEC’s 2024 revenue. CEC has a presence in Texas, with services extending into the Rocky Mountain region, Southwest, and Southeast. Two-year estimated revenue CAGR of approximately 20%, estimated 2025 EBITDA margin(1) of ~13%, and strong FCF conversion. Accretive to Sterling’s return on invested capital profile. CEC’s Founder and Chairman Ray Waddell will assume strategic leadership of Sterling’s electrical services platform growth. CEC’s CEO Daniel Williams will continue to lead its operations. Estimated CEC 2025 revenues of $390M-$415M; estimated CEC full-year 2025 EBITDA $51M-$54M; CEC 2025 adjusted EPS accretion of 63c-70c per fully diluted share. Current timing expectations suggesting roughly five months of contribution in 2025.