Facebook Twitter



American Telemedia Network Inc. has announced it has acquired all of the outstanding stock of Meadow Valley Contractors Inc., a privately held, profitable interstate bridge building company located in Phoenix.

The effective date of the acquisition is July 1, 1990.ATN withdrew from the proposed acquisition last week but reconsidered when undisclosed conditions were resolved satisfactory to the Utah firm.

The Phoenix company has generated a backlog of approximately $30 million in contracts to be completed by Aug. 1, 1990. The company achieved revenues of $18.1 million in 1988, with a net profit of $2 million. This represented an increase from the approximately $13,750,000 in revenues and $1,085,000 in income realized by the company in 1987.

The company is licensed to operate in three Western states, and substantially all of its revenues are currently derived from government funded interstate bridge projects.

Earl K. Cook, president and chief executive officer of ATN, said of the purchase, "We are excited about the prospects of Meadow Valley Contractors and what its acquisition means to ATN. This is our second acquisition within the last year and should permit ATN to attain profitability on a consolidated basis during 1989. We are continuing our search for other appropriate acquisition candidates."

The outstanding shares of the company were acquired for $8 million, paid with a five-year $7.77 million promissory note at 13 percent annual interest, and issuance to the seller of 900,000 shares of ATN stock.

One million dollars of the net profits realized by the company in 1988 were distributed to the sellers prior to the acquisition.

The acquired shares were pledged as security for the payment of ATN's promissary note, and the sellers retain a majority position on the company's board of directors pending payment of the note.