Sterling Acquires Texas-Based Professional Plumbers Group; Purchase Price Consists Of $50M Cash Payment And Earnout Opportunity Upon Achieving Future EBITDA Targets
Portfolio Pulse from Benzinga Newsdesk
Sterling has acquired Texas-based Professional Plumbers Group (PPG) for $50M cash and an earnout based on future EBITDA targets. PPG, with annual revenues of $50-55M, complements Sterling's residential services in Dallas by adding critical plumbing phases post-slab completion. The deal is expected to be accretive with a strong margin profile and offers cross-selling opportunities with a complementary customer base.
November 16, 2023 | 9:07 pm
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Sterling's acquisition of PPG for $50M cash and future EBITDA-based earnout is likely to enhance its service offerings in Dallas, improve revenue, and provide accretive margins.
The acquisition of PPG is directly relevant to Sterling's business expansion and is likely to be viewed positively by investors due to the potential for revenue growth and margin improvement. The deal's structure with an earnout suggests confidence in PPG's future performance, which could further incentivize operational success. The complementary customer base and cross-selling opportunities also suggest strategic synergies that could enhance Sterling's market position in the short term.
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