Brundage Bone buys out Capital Pumping in Texas
Todd 03-18-2019
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ENVER, March 18, 2019 (GLOBE NEWSWIRE) -- Concrete Pumping Holdings, Inc. (Nasdaq:BBCP) ("CPH" or the "Company"), a leading provider of concrete pumping services and concrete waste management services in the U.S. and U.K., has entered into a definitive agreement to acquire Capital Pumping, LP and its affiliates ("Capital Pumping") in an all-cash transaction. The purchase agreement was unanimously approved by CPH's board of directors and is expected to close in the second calendar quarter of 2019, subject to regulatory approvals and other customary closing conditions.

The transformative acquisition greatly enhances the Company's positioning and scale in the fragmented concrete pumping industry, specifically within the Texas region. The increased scale will provide CPH and its customers with advantages including increased breadth of services, expanded fleet availability and a platform to establish itself as the employer of choice in the industry.

"The purchase of Capital Pumping is a unique opportunity that is consistent with our acquisition strategy and adds a well-run business that shares our core values of safety, people and reliability," said Concrete Pumping Holdings CEO Bruce Young. "Capital Pumping's leading position in the highly fragmented Texas region, along with its efficient asset base that has an average fleet age of only three years, instantly attracted us to the business. Additionally, we see a compelling opportunity for Capital Pumping's customer base to access our Eco-Pan concrete waste removal services."

Matthew Homme, board member of CPH and Managing Director of Peninsula Pacific, a private equity firm based in Los Angeles, CA, said: "Under owner Keith Crawford's leadership, Capital Pumping has become a dynamic and well-regarded name in concrete pumping, and we look forward to continuing the proud stewardship of the business as part of expanding the CPH platform."

Capital Pumping generated Adjusted EBITDA1 in 2018 of approximately $23 million, excluding synergies that are expected to be realized through operational efficiencies. The acquisition provides compelling opportunities for CPH to grow its scale and diversity as well as enhance its financial profile. Such opportunities include:

  • Increasing efficiencies of scale in Texas, which is highly fragmented;
  • Strategically expanding its presence in the high-growth Texas region;
  • Providing a larger customer base to expand the Eco-Pan business;
  • Adding a highly complementary business and the youngest fleet of scale in the industry; and
  • Providing compelling adjusted EBITDA, tax, capital expenditure and real estate synergies.

Young continued: "As we look to drive profitable growth over the long-term, Capital Pumping will play a key role in that strategy. We expect the deal will be accretive to CPH's profitability levels, supporting our ability to increase free cash flow and de-lever our balance sheet."

Tariq Osman, Vice Chairman of CPH, and Partner and Managing Director of Argand Partners, a private equity firm based in New York, NY, commented: "We are excited to bring such a strong team and brand into the CPH organization and are confident that the combined company can drive long-term shareholder value."