Engineering Inc - January/February 2018 - 48
MERGERSANDACQUISITIONS
M&A Activity Turning Green
BY NICK BELITZ
D
omestic deal-making activity began to pick up in the latter
half of 2017. While merger and acquisition data through
the first half of the year suggested a slight contraction in
the number of industry transactions-both globally and
domestically-the most recent data shows the industry is on pace to
slightly eclipse the 215 deals made with U.S. sellers in 2016.
We predicted an uptick in completed transactions for full-year
2017 in the November/December 2017 issue of Engineering Inc.,
and as of this writing, we have every indication that 2018 will begin
with positive momentum for buyers and sellers in all segments of
the A/E industry as opportunities in numerous markets align with
acquirers' strategic goals and sellers' need to transition ownership.
Judging by the most recent spate of announcements, ACEC
member deal-makers targeted a handful of critical sectors in the
third quarter of 2017. While acquisitions focusing on data-driven
technology and design and construction management for public
infrastructure contribute to the list, ACEC members announced a
string of acquisitions with at least a portion of firm services dedicated to providing environmental and/or geotechnical expertise.
Notably, while ACEC members Terracon Consultants and Stantec, both experienced acquirers, made buys in coastal markets to
build each firm's presence in the mid-Atlantic region and California,
respectively, less frequent industry buyers, such as ACEC members
GEI Consultants and LaBella Associates, also made plays to build
staff resources, client contacts and greater penetration in environmental and environmental-related markets.
For engineering firm leaders looking to build or diversify their
businesses, the environmental market in the current economy
makes a compelling strategic case. First, the sector enjoys aboveaverage growth expectations. The U.S. environmental consulting
and engineering market has been growing by an average of 2.3
percent annually from 2014 to 2016, according to Environmental
Business International (EBI). However, the near-term outlook is
much brighter as this year the market is expected to follow the 3.4
percent growth in 2017, which is greater than the expected U.S.
Reported Annual U.S. A/E M&A Activity
# of Deals
400
300
223
200
175 180
152 152
241
175 182 184
215
194
100
0
2007
48
ENGINEERING INC.
2009
2011
2013
JANUARY / FEBRUARY 2018
2015
YTD 11/17
GDP growth rate of 2.2 percent over the same timeframe.
Secondly, in addition to rising growth expectations, this segment
is also uniquely positioned to benefit from spending in both the
public and private sector. EBI reports that U.S. environmental consulting and engineering market measured $29.79 billion in 2016
and of that, expenditures of the environmental market were almost
evenly split between the public and private sectors. Public sector
agencies accounted for $15.82 billion, or 52 percent in spending,
with the private sector accounting for 48 percent, or $13.97 billion.
This bifurcation of spending sources offers a measure of diversification to engineering consulting firms as the current economic
expansion continues and buyers look to balance their client portfolios. For added context on sources of funding, the top buyers in
the U.S. environmental consulting and engineering market last year
were federal and local government, energy and manufacturing. The
federal government accounted for about one-third of the market
while the local government accounted for 17 percent, the energy
sector (largely driven by oil and gas companies) accounted for 16
percent, and the manufacturing sector accounted for 11 percent.
As the A/E industry finishes a successful 2017 and firm leaders
look to expand in 2018 and beyond, we fully expect firms to continue going green with further plays and acquisitions in environmental consulting and engineering.
NOVEMBER 2017
H2M architects + engineers (Melville, N.Y.) acquired
Schommer Engineering, Inc. (Morristown, N.J.), a civil engineer-
ing, planning, environmental studies and landscape architecture
firm. Both firms involved are ACEC members.
Architecture, engineering and environmental consulting firm
LaBella Associates (Rochester, N.Y.) acquired Joyce Engineering (Richmond, Va.), a firm serving the solid waste industry for
public and private clients. Both firms are ACEC members.
ACEC member S.W. Cole Engineering, Inc. (Bangor, Maine),
a geotechnical engineering and geo-environmental consulting firm,
acquired Tibbetts Engineering Corp. (Taunton, Mass.), which
provides construction materials testing, construction administration, construction inspection and geotechnical services and will consolidate operations to the firm's Taunton headquarters.
ACEC member WSP (Montreal, Canada) acquired multidisciplinary consulting firm ConCol (Bogota, Colombia) in pursuit
of WSP's Latin American expansion. ConCol is recognized for its
expertise in power, transportation, oil and gas, environmental and
project management services.
Terracon Consultants (Olathe, Kan.) an ACEC member,
acquired two Washington, D.C.-area firms: GeoConcepts Engineering, Inc. (Ashburn, Va.), and GeoCapitol Engineering LLC
(Washington, D.C.). Both acquired firms provide geotechnical
engineering, environmental and construction materials services.
1
Table of Contents for the Digital Edition of Engineering Inc - January/February 2018
Engineering Inc - January/February 2018
Contents
From Acec to You
Market Watch
2018 Legislative Outlook: Infrastructure Up Next
Legislative Action
Flood Protection Analysis
Innovative Restorations
What Happens After the Merge?
A Buyer’s Market With a Hint of Change
Help Desk to Board Room
A Green Machine
Mergers and Acquisitions
Members in the News
Business Insights
Engineering Inc - January/February 2018 - Intro
Engineering Inc - January/February 2018 - Engineering Inc - January/February 2018
Engineering Inc - January/February 2018 - Cover2
Engineering Inc - January/February 2018 - Contents
Engineering Inc - January/February 2018 - 2
Engineering Inc - January/February 2018 - 3
Engineering Inc - January/February 2018 - From Acec to You
Engineering Inc - January/February 2018 - 5
Engineering Inc - January/February 2018 - Market Watch
Engineering Inc - January/February 2018 - 7
Engineering Inc - January/February 2018 - 2018 Legislative Outlook: Infrastructure Up Next
Engineering Inc - January/February 2018 - 9
Engineering Inc - January/February 2018 - 10
Engineering Inc - January/February 2018 - 11
Engineering Inc - January/February 2018 - 12
Engineering Inc - January/February 2018 - 13
Engineering Inc - January/February 2018 - Legislative Action
Engineering Inc - January/February 2018 - 15
Engineering Inc - January/February 2018 - Flood Protection Analysis
Engineering Inc - January/February 2018 - 17
Engineering Inc - January/February 2018 - 18
Engineering Inc - January/February 2018 - 19
Engineering Inc - January/February 2018 - 20
Engineering Inc - January/February 2018 - Innovative Restorations
Engineering Inc - January/February 2018 - 22
Engineering Inc - January/February 2018 - 23
Engineering Inc - January/February 2018 - 24
Engineering Inc - January/February 2018 - 25
Engineering Inc - January/February 2018 - What Happens After the Merge?
Engineering Inc - January/February 2018 - 27
Engineering Inc - January/February 2018 - 28
Engineering Inc - January/February 2018 - 29
Engineering Inc - January/February 2018 - 30
Engineering Inc - January/February 2018 - A Buyer’s Market With a Hint of Change
Engineering Inc - January/February 2018 - 32
Engineering Inc - January/February 2018 - 33
Engineering Inc - January/February 2018 - 34
Engineering Inc - January/February 2018 - 35
Engineering Inc - January/February 2018 - 36
Engineering Inc - January/February 2018 - 37
Engineering Inc - January/February 2018 - Help Desk to Board Room
Engineering Inc - January/February 2018 - 39
Engineering Inc - January/February 2018 - 40
Engineering Inc - January/February 2018 - 41
Engineering Inc - January/February 2018 - A Green Machine
Engineering Inc - January/February 2018 - 43
Engineering Inc - January/February 2018 - 44
Engineering Inc - January/February 2018 - 45
Engineering Inc - January/February 2018 - 46
Engineering Inc - January/February 2018 - 47
Engineering Inc - January/February 2018 - Mergers and Acquisitions
Engineering Inc - January/February 2018 - 49
Engineering Inc - January/February 2018 - Members in the News
Engineering Inc - January/February 2018 - 51
Engineering Inc - January/February 2018 - Business Insights
Engineering Inc - January/February 2018 - Cover3
Engineering Inc - January/February 2018 - Cover4
https://www.nxtbook.com/nxtbooks/acec/engineeringinc_spring2020
https://www.nxtbook.com/nxtbooks/acec/engineeringinc_winter2020
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1119
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0919
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0719
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0519
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0319
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0119
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1118
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0918
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0718
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0518
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0318
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0118
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1117
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0917
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0717
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0517
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0317
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0117
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1116
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0916
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0716
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0516
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0316
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0116
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1115
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0915
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0715
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0515
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0315
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0115
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1114
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0914
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0714
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0514
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0314
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0114
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1113
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0913
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0713
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0513
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0313
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0113
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1112
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0912
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0712
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0512
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0312
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0112
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1111
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0911
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0711
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0511
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0311
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0111
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1110
https://www.nxtbook.com/nxtbooks/acec/engineeringincSeptOct
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0910
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0710
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0510
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0310
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0110
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1109
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0909
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0709
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0309
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0109_v2
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0109
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1108
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0908
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0708
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0508
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0308
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0108
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1107
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0907
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0707
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0507
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0307
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0107
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0505
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0305
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1105
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0306
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0105
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1103
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0906
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0903
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0703
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0106
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0506
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0503
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0303
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0904
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1104
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0704
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0504
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0304
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0905
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0705
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0104
https://www.nxtbook.com/nxtbooks/acec/engineeringinc1106
https://www.nxtbook.com/nxtbooks/acec/engineeringinc0706
https://www.nxtbookmedia.com