Business
Northwest Pipe Company Announces Acquisition of ParkUSA
Water transmission pipe leader acquires Texas-based water technology focused company for cash consideration of $87.4 million VANCOUVER, Wash., Oct. 5, 2021
About this update from Nwpx Infrastructure, Inc.
[{"type":"text","content":"Water transmission pipe leader acquires Texas-based water technology focused company for cash consideration of $87.4 million\n\n\nVANCOUVER, Wash., Oct. 5, 2021 /PRNewswire/ -- Northwest Pipe Company (Nasdaq: NWPX), an industry leader of engineered pipeline systems for water infrastructure, today announced it has acquired Park Environmental Equipment, LLC (\"ParkUSA\") for $87.4 million, net of acquired cash. ParkUSA is an engineered precast concrete and steel fabrication-based company that develops, manufactures and distributes water, wastewater and environmental infrastructure solutions products. The acquisition is expected to be immediately accretive to earnings. The transaction closed on October 5, 2021.\n\n \n \n \n \n \n \n\n \n\"We are excited to have completed the strategic acquisition of ParkUSA, a technology leader in the water infrastructure market. ParkUSA produces water and wastewater control systems as well as water-related environmental solutions products,\" said Scott Montross, President and CEO of Northwest Pipe Company. \"They also produce precast concrete vaults and fabricated steel housings that serve as containment units for the majority of their products, employing some of the same capabilities as our existing Northwest Pipe plants. As a result, we will be focused on bringing the production of ParkUSA's products to our historic facilities. The solid organic growth potential, margin characteristics, asset efficiency and cash flow profile were key determining factors in this acquisition and will remain integral as we build upon the $66.5 million in revenue and $14 million in adjusted EBITDA that ParkUSA generated for the full year of 2020.\"\n\"We are very pleased to join the Northwest Pipe family and view the transaction as a great opportunity to expand our product reach now that we are part of a larger organization,\" said Chris Eberly, Chief Executive Officer of ParkUSA.\nGeorge Eberly III, Chief Operating Officer of ParkUSA added, \"We look forward to participating in Northwest Pipe Company's growth plans for the future.\"\nThe acquisition was funded through the Company's credit facility with Wells Fargo Capital Finance, which included a fully committed $25 million accordion feature to expand the Company's access to available liquidity. Near-term repayment of outstanding debt will be a priority and derive...