Primoris acquires Paynecrest Electric

Primoris Services Corporation announced the acquisition of PayneCrest Electric for $422 million in an all-cash transaction. This strategic move allows the Dallas-based infrastructure services provider to broaden its footprint in the lucrative electrical construction and services sector. By integrating PayneCrest's operations, Primoris aims to strengthen its presence in the high-growth data center services market and align its industrial and renewables segments with enhanced electrical construction capabilities.

The acquisition is expected to be finalized in the second quarter of 2026. Primoris anticipates PayneCrest will contribute significantly to the company's financial performance, with projected revenue between $260 million and $280 million and adjusted EBITDA of $28 million to $32 million in 2026. PayneCrest's expertise in servicing advanced facilities and industrial sectors will be a valuable addition to Primoris' Energy segment, facilitating increased service integration across its portfolio.

Koti Vadlamudi, President and CEO of Primoris, highlighted the strategic rationale behind the acquisition, emphasizing the value of PayneCrest's skilled workforce and strong customer relationships. Vadlamudi noted that the acquisition aligns with Primoris' objectives of expanding its geographic reach and diversifying its service offerings across various end markets.

PayneCrest Electric, headquartered in St. Louis, has a long-standing reputation in electrical construction, with over 70 years of experience in delivering specialized electrical solutions. The company is well-regarded for maintaining multi-decade client relationships and successfully navigating emerging markets. PayneCrest CEO Ryan Freeman expressed optimism about the acquisition, stating that joining forces with Primoris would provide meaningful growth opportunities and enhance resource support for their clients.

In acquiring PayneCrest, Primoris positions itself to capitalize on increased demand within the electrical construction industry, particularly as data center and renewable energy sectors expand. This acquisition places Primoris in a favorable stance against competitors in a sector where skilled labor and established client networks can be significant differentiating factors.

Looking ahead, Primoris will need to navigate potential regulatory approvals and integrate PayneCrest's operations smoothly into its Energy segment. The successful completion and execution of this acquisition could serve as a catalyst for further consolidation within the sector, prompting other market players to reevaluate their strategic positions.