MDU Resources Acquires Lone Mountain Excavation
8/2/2007
Bismarck, ND
MDU Resources Group, Inc. (NYSE:MDU) announced today the acquisition of Lone Mountain Excavation and Utilities, LLC, based in Las Vegas, Nev. Lone Mountain is a specialty excavation and utilities contractor.
Lone Mountain will become an indirect affiliate of MDU Construction Services Group, Inc., a wholly owned subsidiary of MDU Resources. Earnings from the acquisition are expected to be accretive to MDU Resources earnings per share. Financial details about the acquisition of Lone Mountain were not disclosed.
“Lone Mountain will strengthen our service offering and increase the opportunity for CSG companies to offer a more complete construction package to general contractors and owners in the Las Vegas market,” said John Harp, president and chief executive officer for CSG.
CSG’s Las Vegas companies employ more than 1,200 highly skilled workers. Lone Mountain employs about 70 people. Kirk Robinson, president of Lone Mountain, and his staff have served an established client base in Las Vegas for more than 25 years.
“CSG has thrived in the Las Vegas market. Our CSG companies are among the best in the business, and Lone Mountain will only add to that outstanding package of companies,” said Terry Hildestad, president and CEO of MDU Resources.
The information in this release includes forward-looking statements, including statements by the president and chief executive officer of MDU Resources and the president and chief executive officer of Construction Services, within the meaning of Section 21E of the Securities Exchange Act of 1934. Although the company believes that its expectations are based on reasonable assumptions, actual results may differ materially. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the ability to effectively integrate the operations. For a discussion of other important factors that could cause actual results to differ, refer to Item 1A – Risk Factors in MDU Resources’ most recent Form 10-K and Form 10-Q.
MDU Resources Group, Inc., a member of the S&P MidCap 400 index, provides value-added natural resource products and related services that are essential to energy and transportation infrastructure. MDU Resources includes natural gas and oil production, natural gas pipelines and energy services, construction materials and mining, construction services, and electric and natural gas utilities. For more information about MDU Resources, see the company's Web site at www.mdu.com or contact the Investor Relations Department at investor@mduresources.com.
Contacts:
For financial inquiries, contact:
Vernon A. Raile
Executive Vice President, Treasurer and Chief Financial Officer
(701) 530-1003
Phyllis A. Rittenbach
Director of Investor Relations
(701) 530-1057
For media inquiries, contact:
Mark Hanson
Public Relations Representative
(701) 530-1093