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.
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By GlobalDataThis 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.”
