Perini Corporation

Wed January 15, 2003 - Northeast Edition
CEG



Perini Corporation, a building, civil construction and construction management company, announced that it has signed a definitive agreement to acquire James A. Cummings Inc., a privately-held construction company.

Based in Fort Lauderdale, FL, James A. Cummings Inc. is an established building company in the South Florida region, with approximately $100 million in annual revenues, specializing in the construction of schools, public and commercial facilities. Under the terms of the agreement, Perini agreed to acquire 100 percent of the company’s stock for $20 million in cash, subject to terms and conditions, including lender approval.

Under the terms of the agreement, James A. Cummings Inc. will operate as a wholly-owned subsidiary of Perini Corporation and will be managed by its current senior management team. James A. Cummings will serve as CEO of James A. Cummings Inc. and will become a director of Perini Corporation. William R. “Rick” Derrer will serve as president and Michael Lanciault will serve as senior vice president, chief estimator of James A. Cummings Inc.

“We are very pleased to announce this definitive agreement, which will expand our market presence in the Southeast region and support Perini’s strategy to achieve profitable growth,” said Ronald N. Tutor, Perini’s chairman and CEO.

“James A. Cummings Inc. brings with it an excellent regional reputation as a ’builder of choice’ for schools, public and commercial facilities. The company meets every one of our stringent qualifications for a potential acquisition. It has a track record of profitable operations. It has a growth-oriented management team that wants to stay and continue to build the company. It expands our physical footprint and brand in the marketplace that is rich with opportunities for growth. And, most importantly, James A. Cummings Inc. shares Perini’s commitment to building long-term client relationships, based on on-time delivery, tight cost controls and high quality standards,” Tutor said.

James A. Cummings Inc. employs more than 300 people in the Southeast region. In addition to serving as chairman and CEO of the company, James A. Cummings is active in the Florida business and philanthropic communities, serving on the boards of the Boys and Girls Clubs of Broward County, United Way, Broward Partnerships for the Homeless Inc. and Tri-County Rail Authority.

“James A. Cummings Inc. is very excited about joining the Perini team,” said Cummings. “Perini is known for its ability to successfully complete large-scale, complex projects on a fast-track basis, including the Gaylord Palms Resort and Convention Center in Orlando, FL. By joining with Perini, we will expand the capabilities we can offer to our shared client base and create opportunities for growth and professional development for our employees in a world-class organization.”

Perini Corporation expects that the transaction will be financed through an increase in capacity under the company’s existing credit agreement.