09:08 AM EDT, 06/17/2025 (MT Newswires) -- Sterling Infrastructure ( STRL ) said Tuesday it agreed to acquire CEC Facilities Group for $505 million in a cash-and-stock deal expected to close in Q3.

The company said the upfront price at closing includes $450 million in cash and $55 million in stock, with an additional earnout tied to performance through 2029.

CEC, a Texas-based electrical and mechanical contractor, will join Sterling's E-Infrastructure Solutions segment, Sterling said. The acquisition is expected to broaden Sterling's reach in electrical services, the company said.

Sterling said it expects CEC to generate $390 million to $415 million in revenue and $51 million to $54 million in earnings before interest, taxes, depreciation, and amortization this year.

The transaction is projected to boost Sterling's adjusted earnings by $0.63 to $0.70 per diluted share, assuming a five-month contribution based on current timing, the company said.