Primoris Services Corporation Acquires Coastal Field Services
DALLAS, TX Primoris Services Corporation announces that it has acquired the assets of Coastal Field Services ("Coastal"). Based in Beaumont, Texas, Coastal provides pipeline construction and maintenance, pipe and vessel coating and insulation, and integrity support services for leading companies in the oil and gas industry. The company targets midstream oil and gas companies that utilize pipelines and storage vessels for their products.
For the year ended Dec. 31, 2016, Coastal generated EBITDA margins greater than 10 percent on revenues of $37.3 million. Repeat customers accounted for approximately 90 percent of revenue.
Total consideration was approximately $27.5 million paid in cash at closing.
Coastal will operate as Primoris Coastal Field Services ("PCFS"), part of Primoris' Pipeline and Underground segment. Jeff Bridges, former co-owner and President, will continue to manage day-to-day operations as President of PCFS.
David King, Primoris President and CEO, said, "The acquisition of Coastal dovetails well with the work performed by our Primoris Pipeline and Field Services groups. It allows us to offer our clients a wider range of services, including compressor station capital projects, pipeline integrity work, call-out work, and insulation of plant piping and vessels. Coastal provides Primoris an opportunity to increase our market share in the Gulf Coast energy market. We welcome Coastal and its employees to the Primoris family."