FRAMINGHAM, Mass. (AP) Perini Corp. said it will acquire privately held Tutor-Saliba Corp. for $862 million in an all-stock deal pairing two contractors that handle large public and private construction projects.
Shareholders of Tutor-Saliba will receive shares equal to about 45 percent of the common stock of Perini in exchange for their Tutor-Saliba holdings.
Perini’s shares will continue to trade on the New York Stock Exchange after the deal’s expected closure in this year’s third quarter, Framingham-based Perini and Sylmar, Calif.-based Tutor-Saliba said in a joint news release. The deal is subject to shareholder and regulatory approvals.
Ronald Tutor, the majority owner of Tutor-Saliba, is also chairman and chief executive of Perini. He abstained from a vote to approve the deal by Perini’s board, and will serve as chairman and CEO of the combined company.
Tutor has committed to hold at least 70 percent of the shares he receives in the transaction for at least five years after the deal closes, the companies said.
Tutor said the transaction “completely aligns the common business interests of both companies into a single, focused competitor.’’
Perini said the deal will add to its earnings beginning in the first full fiscal year of combined operations.
Perini, incorporated in 1918, provides general contracting, construction management and other services to private clients and public agencies worldwide. Tutor-Saliba is a 60-year-old company concentrating on complex public and private projects ranging from $100 million to $1 billion or more in size.
The announcement was made after shares of Perini rose 15 cents to close at $38.25.