BLACK RIVER FALLS - Longtime Black River Falls business Lunda Construction Co. has been sold to a California-based civil and building construction company.
Tutor Perini Corp. announced Friday it has signed a letter of intent to buy Lunda, which will continue to operate under the company name and be managed by its senior management team, with Larry Lunda remaining as president and CEO.
"We go back to 1938, and it was a difficult choice," Lunda said. "We think this is a good match with Tutor Perini."
Lunda said the sale won't affect the Lunda Charitable Trust, which has made numerous financial donations to the community of Black River Falls, including the Lunda Center and the Lunda Community Park as well as the Lunda Center at Western Technical College.
Lunda builds and rehabilitates bridges, railroads, dams and other civil structures in the Midwest and throughout U.S. It has three operating divisions in six offices in Wisconsin and Minnesota and has worked in 30 states. Lunda has more than 600 employees. Its revenues were about $400 million in the fiscal year ending Dec. 31, 2010.
"We believe we did this with a lot of thoughtful soul searching, weighing the pluses and minuses for the employees," Lunda said. "We hope and believe we did the right thing for the continuity of the company and jobs."
Black River Falls Mayor Ron Danielson said it is too early to know how the sale will affect the city.
The purchase price for Lunda is expected to be $153.5 million, consisting of $131.8 million in cash at closing and $21.7 million in a note payable in five years, plus a structured earnout based on profitability targets for three years after the closing date. The deal is expected to close July 1, pending regulatory approval.
"Lunda Construction is one of the most successful civil contractors in the United States and represents our expansion into the Midwestern markets," said Ronald N. Tutor, chairman and CEO of Tutor Perini.
"They have a resume of experience which complements our operations, and we in turn will be in a position to support their growth objectives in their existing markets," he said.
Tutor Perini was founded in 1894.