(San Antonio, Texas) - Construction conglomerate Zachry Group, Inc., announced today that it has reached an agreement to acquire Utility Engineering Corporation (UE), an engineering subsidiary of Xcel Energy Inc.

Zachry and Xcel Energy have signed a stock purchase agreement for Zachry to acquire all of the outstanding shares of UE, headquartered in Denver. By acquiring the stock, Zachry will also acquire three UE subsidiaries, including Precision Resource Company, a professional staffing company; Proto-Power Corporation, an engineering and project management company dedicated to the nuclear power industry, and Universal Utility Services, LLC, a full-service industrial maintenance group. The companies will finalize the transaction in April. The parties did not disclose the terms of the acquisition.

“This purchase of UE provides a unique opportunity for us to combine our construction experience with UE’s engineering capabilities,” said John B. Zachry, president of the Zachry Group, who will be chief executive officer and chairman of UE. “Together, we will be more fully able to serve our customers, while continuing our ongoing relationships with other engineering and construction partners.”

UE and its subsidiaries, which employ about 500 people, will retain their names and principal offices in Amarillo, Denver, Groton, CT., Minneapolis and Omaha. Key Zachry personnel will be assigned to UE to facilitate the transition and provide ongoing management leadership.

Zachry Group, Inc., is the parent company of Zachry Construction Corporation and Capitol Aggregates, Inc., both based in San Antonio. The enterprise was founded in 1924 in Laredo, Texas. The construction company has grown to offer a wide array of services including construction, project development, construction management and industrial maintenance to both domestic and international customers. Zachry Construction Corporation constructs and maintains commercial and government facilities, heavy civil and highway projects, power plants, steel mills, pulp and paper mills, chemical plants and refineries. Capitol Aggregates has operated quarries and production facilities throughout Texas for 45 years, producing more than 6 million tons of aggregate annually for the construction industry.

UE will continue to offer a broad range of technical services, including engineering, design, procurement, construction management, start-up, commissioning and project development services primarily to the nuclear and power generation industry, including modification projects and O&M services.

Xcel Energy is a major U.S. electricity and natural gas company, with operations in 10 Western and Midwestern states. Xcel Energy provides a comprehensive portfolio of energy-related products and services to 3.2 million electricity customers and 1.7 million natural gas customers through its regulated operating companies. In terms of customers, Xcel Energy is the fourth-largest combination natural gas and electricity company in the nation. Company headquarters are located in Minneapolis. More information is available at www.xcelenergy.com.

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