Publish Date : 07-Jan-2013
Great Lakes Dredge & Dock Corp. (GLDD), the US based leading provider of dredging services, has purchased the assets of Terra Contracting LLC, for about $20 million.
Terra Contracting is leading provider of a range of services for environmental, maintenance and infrastructure-related applications. Its remediation, maintenance/repair, abatement and emergency response services offer corporate and governmental customers with wide range of project-critical environmental solutions. The firm will use the proceeds from this sale to pay debt and offer a return of equity to ownership.
Terra is based in Kalamazoo, MI, and has about 200 engineering, operations and administrative employees. It supports customers in over 30 states in environmental, infrastructure, energy, industrial, transportation, waste water and construction sectors. It offers various services, such as the removal and remediation of contaminated sediment, soil and groundwater, superfund site clean-ups, hazardous waste removal and brownfield site restoration, facility and equipment decontamination and decommissioning, tank cleaning, hazardous materials abatement, emergency response services, and municipal utility, sewer and wastewater infrastructure maintenance, inspection and refurbishment.
Terra is likely to earn about $45 million of service revenue with 15% EBITDA margins in 2013, besides nearly $20 million of pass through transportation and disposal revenue. It will add around $20 million to GLDD’s year-end 2012 backlog, not including project option opportunities.
“The Terra acquisition fits our strategic vision to gain a stronger foothold in the environmental remediation market. Terra will broaden our demolition segment with additional services and expertise as well as expand our footprint in the Midwest. Terra reinforces our efforts to develop relationships with larger industrial and governmental clients. Additionally, our rivers & lakes operations can leverage Terra’s environmental remediation focus to accelerate its participation in the environmental dredging market,†said Jon Berger, CEO of GLDD.
“With Terra comes a seasoned, highly knowledgeable and experienced management team, including owner Steve Taplin, all of whom are excited to team with Great Lakes to grow the environmental remediation business. We look forward to working with the Terra team to leverage our combined technical expertise and expanded asset base to broaden the Great Lakes footprint and market reach in this strategic market sector, while providing Terra with the resources and financial capability to grow into new services and geographic regions. Steve Taplin has been named President of the new company, Terra Contracting Services LLC and believes this transaction will be very positive for the company he founded in 2001,†said Bruce Biemeck, President and COO of GLDD.
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