Iron Eagle Announces Execution of Definitive Agreement to Acquire Virginia-Based Electrical & General Contractor
Iron Eagle Group, Inc. (OTCQB: IEAG) (PINKSHEETS: IEAG), a construction and contracting services provider in the infrastructure, commercial, and government markets, today announced that it has signed a definitive agreement to acquire 100% of York River Electric Inc., an electrical and general contractor serving clients in Virginia, Maryland, North Carolina, and Pennsylvania. For the year ending December 31, 2011, York River generated over $35,000,000 in revenue and ~$4,000,000 in EBITDA. As of June 30, 2012, York River had backlog of over $21,000,000. The closing is subject to financing and the aggregate upfront purchase price to be paid by Iron Eagle shall consist of cash and Iron Eagle equity.
Founded over 25 years ago, York River Electric is a Virginia-based full service construction management services for general and specialized construction projects. They are a specialized multi-faceted electrical contractor, performing primary (high) voltage electrical work involving cables, as well as the construction and/or renovation of electrical substations. York River Electric has built a solid reputation with both institutional and government clients, including the Pentagon, NASA, Navy and Army bases, Green Mountain Coffee, and national accelerator facilities across a number of states including serving clients in Virginia, Maryland, North Carolina, and Pennsylvania.
As part of the transaction, Iron Eagle will sign a five year employment agreement with Cathy McQuade and Mark Bryan, who are the 100% owners, to continue in leadership positions as President and Operations Manager of York River and also become part of Iron Eagle's Executive Advisory Committee.
Jason Shapiro, Iron Eagle's CFO, commented, "York Electric is a proven regional leader, with a strong and growing backlog, a culture of excellence, and a dedicated management team. We believe that York will create significantly added value and growth for Iron Eagle."
Cathy McQuade, President of York Electric, added, "We believe that Iron Eagle has the right strategy and right team for success, and we are proud to join the Iron Eagle team." For more information on York Electric, please visit www.yorkriverelectric.com.
About Iron Eagle Group, Inc.
Iron Eagle is an infrastructure company dedicated to rebuilding America's infrastructure. Iron Eagle provides construction and contracting services in commercial and government markets. Iron Eagle's management consists of business leaders in construction, government contracting, defense, finance, operations, and business development. Management has a compelling strategic plan to capitalize on the annual $100 billion market opportunity in infrastructure construction created by government spending at the federal, state, and municipal levels throughout the United States. Through the experience and track records of its management team, along with a strong and diversified balance sheet, Iron Eagle believes it will have a major competitive advantage in being able to provide higher levels of construction surety bonds through its sureties to support its performance on infrastructure projects. Iron Eagle will further target additional growth opportunities through the highly focused bidding of federal, state, and municipal construction projects as subcontractor to some of the multi-billion dollar prime contractors in the United States. Additionally, Iron Eagle expects to grow by making accretive acquisitions in segments of its industry with large growth potential.
For more information, please visit Iron Eagle's website at www.ironeaglegroup.com.
Safe Harbor Statement
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release contains statements that are forward-looking, such as statements related to the future anticipated direction of the industry, plans for future expansion, various business development activities, planned or required capital expenditures, future funding sources, anticipated sales growth, and potential contracts. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by, or on behalf of, the company. These risks and uncertainties include, but are not limited to, those relating to development and expansion activities, dependence on existing management, financing activities, and domestic and global economic conditions.
Company Contact:
Iron Eagle Group, Inc.
Mr. Jason M. Shapiro, CFA, CPA, J.D.
Chief Financial Officer
Phone: +1 (917) 969-4845
Email: jasons@ironeaglegroup.com
Website: www.ironeaglegroup.com
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