Bowman today announced it has entered into a definitive purchase agreement to acquire Exeltech Consulting, Inc. (“Exeltech”) based in Lacey, Washington. Exeltech specializes in bridge design, transportation planning, environmental compliance, civil engineering, landscape architecture, permitting and construction management for owners and operators of transportation infrastructure, transit facilities, ports and harbors, waterfront developments, building structures, and storm drainage and utility systems. Led by Santosh Kuruvilla, PE, SE, PMP, Exeltech serves clients throughout the Pacific Northwest from offices in Washington, Oregon, and Montana.
“Exeltech complements Bowman from both a services and geographic footprint perspective,” said Gary Bowman, chairman and CEO of Bowman. “The structural bridge design and transportation infrastructure experience of the Exeltech team expands the capacity and reach of our rapidly growing national transportation and ports and harbors practices. Their location directly complements our recent FCS acquisition and strengthens our presence in the Pacific Northwest. Given that we’ve already begun collaborating with Exeltech on projects, I expect a meaningful amount of revenue and utilization synergies from this combination.”
“We have steadily grown Exeltech and successfully expanded our reach within our markets, and now we want to extend our reach nationally,” said Santosh Kuruvilla, president of Exeltech. “Joining with Bowman offers us the opportunity to align with a rapidly growing national firm with a commitment to expanding in areas where we are highly experienced. We believe we can be consequential in that effort and look forward to introducing our team’s extensive structural bridge and civil transportation capabilities into Bowman’s portfolio of service offerings.”
Exeltech’s structural engineering team brings extensive expertise in the design, inspection, assessment, repair, retrofit, replacement, load rating and construction of a wide range of structures. Their knowledge spans local, state and federal requirements for roadway and pedestrian bridges, grade separations, tunnels, culverts, retaining walls, fixed and floating structures, as well as marinas, piers, wharves, breakwaters, docks and both new and historic buildings. Exeltech’s civil engineering team supports a wide range of projects including roadways, roundabouts, pedestrian and bicycle enhancements, parking, parks and trails, airports, marine facilities, railroads, fish passage improvements, culvert replacements and general use site development. Additionally, Exeltech’s environmental sciences team focuses on creating highly constructible, cost-effective designs that deliver the highest degrees of regulatory, environmental and sustainability standards.
Financed with a combination of cash, seller term notes, and a convertible note with a conversion strike price of $32.32 per share, the acquisition conforms with previously discussed target multiples and operating metrics. Bowman anticipates the acquisition will initially operate at an annualized net service billing run rate of approximately $7.0 million and be immediately accretive. Closing is subject to certain usual and customary conditions which Bowman expects to be met on or after November 5, 2024. More detailed information on M&A activities, pipeline and guidance updates are provided in connection with scheduled quarterly and annual communications.
Morrissey Goodale, a specialized management consulting and research firm exclusively serving the architecture, engineering, and environmental consulting industries, initiated the transaction and advised Exeltech.
About Exeltech Consulting, Inc. Founded in 1989 and subsequently purchased in 1998 by Santosh Kuruvilla, PE, SE, PMP, Exeltech works with state, federal, and local agencies, consultant teams, and private clients. The firm provides design, planning, permitting, and construction management services relating to bridges, roads, transit facilities, waterfront developments, buildings, landscape architecture, site developments and storm drainage and utility systems. Over its nearly 40-year history, the firm has transformed from a bridge engineering firm into a multidisciplinary consulting company providing planning, permitting, design, and construction management for clients’ building, site development, and transportation projects. For more information on Exeltech, their projects, and their services, visit www.xltech.com.
Tags:M&A
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