Acquisition of Marcor provides additional remediation and East Coast strength.
John Hennessy, CEO of Nuprecon/CST, Snoqualmie, Wash., says his demolition firm’s acquisition of Maryland-based Marcor Remediation Inc. will create strategic opportunities for the company to expand its presence both geographically and across lines of service.
The newly-combined company will have more than 1,500 employees in 20-plus offices. The company is expected to generate approximately $250 million in annual revenue.
Marcor’s significant presence and resources in the northeastern United States complement the strong West Coast and Southeast presence of Nuprecon/CST, the company states in a news release announcing the acquisition. Marcor will continue to operate under its brand name, according to the release.
John Hennessy and Sage Khara, the founders of Nuprecon and CST respectively, which merged in early 2008, will continue in their executive roles at Nuprecon/CST. Marcor equity holders Dave Jungers, chief operating officer, and Tim Miller, executive vice president, will retain their leadership roles at Marcor and have equity positions in the combined entity.
“One reason we were attracted to Marcor was that Sage had nothing but great things to say about them as a competitor, and that doesn’t always happen in our industry,” Hennessy tells the Recycling Today Media Group.
Hennessy continues, “And certainly we looked at their market share and how the services they provide would complement what we do.”
The merger process has started, said Hennessy, including systems integration. “Marcor has spent a lot of time, money and energy on accounting, business development and communication systems, and they have a world-class safety program,” he comments. “A primary reason why we liked Marcor is because there are not a lot of differences between it and Nuprecon/CST.”
Operationally, Nuprecon/CST provides more depth and capabilities on structural demolition and other “heavy” services, while Marcor’s wide array of remediation techniques and its depth of experience on the environmental side can broaden what Nuprecon/CST offers. At a recent meeting of executives of the two firms Hennessy says that while watching a Marcor slide show he became familiar with niche services Marcor provides “that I never knew they did.”
Hennessy says that while there is no question the industry environment is challenging right now, there was no wavering as far as completing the transaction. “The due diligence process is rigorous and expensive and put us both to the test, but there was never really any hesitation that this was the right thing to do.”
The continued growth of Nuprecon/CST, says Hennessy makes the company “very unique compared to others in our industry; for people looking for a career with a lot of growth opportunities, I think we’re a destination now.”
The transaction was overseen by Nuprecon/CST’s majority owner, Seattle-based Evergreen Pacific Partners, which manages $700 million of equity and invests in what it calls “private, traditional industry, middle-market companies in Western North America.”
Nuprecon/CST offers demolition services and a range of turnkey remediation and recovery services, including concrete sawing, drilling, abatement services, C&D material recycling services and site preparation.