Pernix Group, Inc. to Acquire KBR Building Group & the assets of DCK Guam : Fiji and the Pacific to benefit from Acquisition

LOMBARD, IL — June 26, 2015 — Pernix Group, Inc. (OTCQB: PRXG), a global construction company recognized by Engineering News Record for being one of the Top 50 American Contractors working abroad for the last four years in a row, has announced that it has entered into two separate purchase agreements to acquire KBR Building Group, and all the assets of DCK Guam. These acquisitions will expand Pernix’s commercial domestic operations and grow its international business.  These added resources and capabilities will significantly benefit Fiji and the Pacific Island countries. Pernix has a strong presence in Fiji.  Further, Fijian Holdings Ltd has a 25% stake in Pernix Fiji. Pernix operates the two main diesel fired power plants in Fiji and has responsibility to provide turn-key utility service on the Island of Espirito Santos Vanuatu. Pernix will soon be establishing itself in Papua New Guinea to take advantage the growing construction and power opportunities in that country. 

The addition of personnel, resources, proven past experience and successful past performance in the advanced manufacturing, industrial, life sciences, research & development, food & beverage, commercial, mixed-use and institutional markets will serve to expand Pernix’s domestic offerings. Pernix will further leverage the KBR Building Group’s and DCK’s experience to expand its commercial market in Guam., Fiji and  throughout the Pacific Region..With these acquisitions Pernix brings to Fiji and the Pacific cutting edge technology, expertise and leadership in construction, infrastructure development and power generation.  Pernix now has the capacity to undertake projects of any scope and size in any country around the world.

CEO & President of Pernix, Nidal Z. Zayed stated “Our mission has always been to safely deliver complex projects worldwide for the most discriminating customers while consistently exceeding all their expectations, the addition of KBR Building Group’s and DCK’s expertise to our growing portfolio will serve to not only improve our domestic offerings, but also allow us to leverage that expertise for a growing number of clients worldwide.” He went on to say, “The addition of KBR Building Group’s and DCK’s experienced and innovative team, and portfolio focused on sustainable design and construction adds tremendous value to Pernix, and evidences our continued commitment to delivering excellence in everything we do and build.”

Mr. Zayed continued by saying “This is an exciting time for our team, for twenty years one of our main focal points has been growing our Federal Government construction work abroad, the addition of KBR Building Group and DCK creates a new Center of Excellence for private sector business – one that Pernix will leverage worldwide, putting us on a strategic growth trajectory for not only Federal Government, but also the commercial and industrial markets, and will also serve as a medium to continue growing Pernix’s power market.”

“Our team is honored and excited to be joining the Pernix Group family of companies and returning to our BE&K Building Group roots” said Mac Carpenter, President of the Building Group. “The opportunity to continue providing world-class construction service to our clients, while leveraging Pernix’s agility, commitment to safety, quality control, and world-wide presence will allow us to continue exceeding our clients’ expectations while expanding our reach and allowing us to follow our clients throughout the world.”

Upon completion of the sale, which is expected to occur by June 30, 2015, KBR Building Group will be known as “BE&K Building Group, A Pernix Group Company.”

Pernix is financing this $28 million dollar transaction (including approximately $6 million of working capital) through a combination of equity financing and existing cash. Pernix’s Chairman of the Board, Mr. Don Gunther stated “I am proud of what our management team has accomplished. This acquisition will be transformational and allow our company to significantly penetrate and grow the domestic market. We now have a platform for national growth and diversification. This acquisition represents a significant milestone for Pernix Group. Our Board and I continue to be bullish on the future of Pernix.”