Northwest Pipe Company 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.
Previously a privately held company, ParkUSA was founded in Houston, Texas in 1984 by the Eberly family. In 2020, it had approximately 280 employees and revenues of $66.5 million. ParkUSA's three existing Texas manufacturing facilities located in Houston, Dallas, and San Antonio will further expand Northwest Pipe Company's presence in the booming Texas water infrastructure market.
The completion of this acquisition marks Northwest Pipe Company's third major transaction in just over three years. In July 2018, the company acquired Ameron Water Transmission Group and in January 2020, it acquired Geneva Pipe and Precast Company.
"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."