Granite to Buy Stake in TIC Holdings

Granite Construction Inc. said it agreed to acquire 30% of TIC Holdings Inc., an industrial construction company, for about $21 million. Granite, a heavy civil contractor, said it will acquire 10% of closely held Steamboat Springs, Colo.-based TIC this year and make an offer to TIC’s shareholders for the additional 20% of the shares next spring after completion of TIC’s 1996 audited financial statements. Granite, of Watsonville, said its long-term intent is to acquire a majority interest in TIC. The company said it plans to finance the deal through its existing credit lines. For the nine months ended Sept. 30, Granite Construction earned $24.6 million, or $1.36 a share, on revenue of $704.9 million. “Our investment in TIC gives us a strong foothold in the growing industrial process marketplace, provides a broader diversification of our core business and is expected to provide joint venture opportunities for our existing operations via a strategic alliance with TIC,� said Granite President and CEO David H. Watts. TIC is one of the leading general heavy industrial contractors in the U.S. Granite shares lost 37.5 cents to close at $19.50 in Nasdaq trading.