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Sterling Acquires Specialty Site Development Company Petillo for USD 195m.

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Vincent

MANews-(C)2009-2022

US-based civil and residential construction company Sterling Construction Company, Inc. (NASDAQ: STRL) has entered into a stock purchase agreement and closed on the acquisition of specialty site development solution provider Petillo Inc. and its related operating entities, the company said.

Petillo is a specialty site development solution provider in the Northeast and Mid-Atlantic.

Founded in 1994 by owner and CEO Michael Petillo, Petillo has posted compound revenue growth from 2017 to 2021 of 29% through continued expansion of its geographic footprint, customer base and service offerings.

Petillo's 2021 revenues and income from operations are expected to be approximately USD 212m and USD 29m, respectively.

The aggregate consideration of USD 195m paid on the closing date consisted of USD 175m of cash and 759,447 shares of Sterling common shares valued at USD 20m.

Additionally, under the purchase agreement, upon the satisfaction of achieving the specified annual operating income growth thresholds, and certain other conditions, the sellers are entitled to earn-out payments not to exceed USD 20m over the next five years.

The company also entered into a five-year employment agreement with Michael Petillo, which provides for five equal annual retention payments totaling USD 15m.

Effective December 29, 2021, Sterling entered into a Third...

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