Weekly merger, acquisition, deal update: August 3
The pace of industry consolidation has picked up dramatically over the summer. This week Morrissey Goodale tracked six domestic and four international transactions. This brings the total year-to-date deal count in the United States to 104, up 7% over the 97 domestic deals tracked through the same period in 2011. Including the U.S., the total global deal count is now 193, down a marginal 2% from the 196 global deals tracked through the same period last year.
This week Morrissey Goodale tracked seven domestic deals and one international transaction. This brings the total year-to-date deal count in the United States to 111, up 8% over the 103 domestic deals tracked through the same period in 2011. Including the U.S., the total global deal count is now 201, down just 2% from the 205 global deals tracked through the same period last year. After a slow start to the year, consolidation has really picked up a head of steam over the summer.
In case you missed it the last few weeks, be sure to click here for Morriessey Goodale's special report Industry M&A 2012 Six Month Review. In it, you will find additional insight, thoughts and major trends observed through the first six months of 2012.
Leading engineering, procurement and construction company to the energy, water, wastewater and mining sectors CB&I (The Woodlands, TX) signed a definitive merger agreement to acquire The Shaw Group (Baton Rouge, LA), a 27,000-person leading global provider of engineering, construction, technology, fabrication, remediation and support services for clients in the energy, chemicals, environmental, infrastructure and emergency response industries. Under the agreement, CB&I will acquire Shaw in a cash and stock transaction valued at approximately $3 billion and scheduled to close during the first calendar quarter of 2013. CB&I will use cash on the balance sheets of both companies, along with approximately $1.9 billion in debt to finance the acquisition. According to CB&I, based on the estimated cash position of Shaw at the end of its August 31, 2012 fiscal year, this equates to an enterprise value of approximately $2.0 billion. Using consensus estimates, the implied transaction multiple is 7.0x Shaw's fiscal 2012 adjusted EBITDA. The combination of CB&I and Shaw will create one of the world's largest engineering and construction companies focused on the global energy industry and featuring a global work force of nearly 50,000 employees and a backlog of over $28 billion. CB&I plans to operate Shaw as a business sector under the brand name CB&I Shaw. Link to details
Global multi-disciplinary design firm IBI Group (Toronto, Ontario, Canada) acquired Taylor Young(Manchester, United Kingdom), a 100-person full-service architectural, urban planning and design, and landscape architecture practice with offices in Manchester, London and Liverpool. Taylor Young has a strong reputation in the design of facilities in healthcare, education, housing, as well as urban planning/design and landscape design for a broad range of clients. Moving forward, the firm will do business as IBI Taylor Young. With the acquisition, the IBI staff increases to approximately 3,050. Link to details
International provider of professional engineering, technical consulting and certification services NV5(Hollywood, FL) acquired the assets of Kaderabek Company (KACO) (Miami, FL), a 30-person consulting engineering firm specializing in geotechnical engineering, foundation engineering, engineering geology and hydrogeology, drilling, construction observation and materials testing across the public and private sectors. NV5 is a 450-person firm with specialized capabilities that span across five vertically-organized business lines serving infrastructure, construction, real estate, and the environmental markets through a network of over 15 offices located in California, Colorado, Utah, Florida and New Jersey. Its clients range from public sector clients-- U.S. federal, state, municipal and local governments, military and defense clients, to quasi-public and private sector clients-- healthcare, energy and utilities fields, including schools, universities, hospitals, health care providers, insurance providers, large utility service providers, and large and small energy producers. Link to details
International design firm Cunningham Group Architecture (Minneapolis, MN) merged with Hutton Architecture Studio (Denver, CO), a 14-person firm that provides complete architectural design and construction administration services, including site selection, master planning, programming, interior design and sustainable design to clients throughout the Rocky Mountain West, including a particular emphasis and specialty in the sustainable design of environments for learning and worship. Cunningham Group is a 240-person provider of architecture, interior design, urban design and planning services for a diverse mix of client and project types and features offices in Minneapolis, Los Angeles, Las Vegas, Biloxi, Denver, Seoul and Beijing. Link to details
International leader in upstream oil and gas consulting and engineering services firm New Tech Global (NTG) (Houston, TX) acquired Carr Environmental Group (CEG) (Spring, TX), a full-service environmental consulting firm specializing in compliance for the oil and gas industry and featuring a multidisciplinary staff of geologists, soil scientists, biologists, environmental scientists and engineers. Link to details
Professional management and technical services firm nStone Corporation (Albuquerque, NM) acquired Coupland-Moran Engineers (Albuquerque, NM), a mechanical and electrical design and engineering services firm. NStone's technical and engineering capabilities include mechanical and electrical engineering design, civil and structural engineering, fire protection, energy studies, systems analysis, solar energy installations and operations and maintenance services. Link to details
HPD Architecture (Dallas, TX), a design and architecture firm specializing in residential, commercial and institutional architecture merged its practice with that of HPD Design for Living (Dallas, TX), a design-build practice focused on "aging-in-place" and design service offerings that allow seniors and individuals with disabilities to live more independently and comfortably in their own homes. Combined, the HPD practice focuses on new construction, renovations and additions for private residences, corporate and medical offices and universities. Link to details
Global provider of technology solutions to organizations with engineering design and information technology requirements Rand Worldwide (Framingham, MA) acquired the assets of Informative Design Partners (IDP) (Charlottesville, VA), a computational fluid dynamics analysis consulting and thermal simulation services firm serving multiple industries, including (but not limited to) aerospace, architectural / AEC / MEP, energy and power generation, HVAC, mining, transportation, healthcare, oil and gas, telecommunications and water treatment. It is Rand's intent that through the acquisition, its clients in the architecture, engineering and construction markets will take advantage of the broader expertise and services that the IDP team offers. Link to details
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