Wednesday, 7 February 2018

S-2942-1 JPN EXCAVATING, HEAVY CIVIL AND UNDERGROUND UTILITY COMPANY SPECIALIZING IN RENEWABLE ENERGY & POWER SECTOR (Western US)



Business Description:  Serving the Western United States, including Alaska, and Hawaii, the Company is growing rapidly and is well diversified in both the private and public sectors, while establishing itself as a dominant player in the fast-expanding, Renewable Energy Sector and is active in the power industry, public works and site-civil residential work. This well-established business has high year-over-year growth and is an approved supplier to key government agencies, with nearly $200 million in pending contracts. Current opportunities include large joint venture projects and increasing demand for wind farms. Significant tail winds will spur continuing growth: Increasing demand for renewable energy points to decades of tremendous growth. The FAST Act increased federal funding for highway infrastructure by 5.1% in 2016 with continued annual increases of 2 to 5% through 2020, and power spending in 2017 will increase for a 6th consecutive year with ~$100 billion in spending.

Distribution: The Company secures business primarily through competitive bidding, but its reputation and performance provide a unique competitive advantage leading to repeat business. Another source of business is its status as preferred vendor for a power marketer. Awarded projections in 2018 to date total $33 million, with pending projects in 2018 totaling an additional $27 million.  A $140 million wind farm project is also possible.
Operational Strengths: The Company’s significant growth is based on multiple factors, including diversification in the public and private sectors, and its competitive advantage as i) a government approved supplier and ii) registration as a preferred vendor for a large federal power marketer. 90% of projects are from previous customers that include major power companies and wind farms. Current market demand gives the Company a strong pricing advantage. A growing segment of its business comes from the renewable energy sector, and is also strong in the power industry, public works market and some site-civil residential work. The Company’s stellar reputation for quality and integrity creates demand for its services, and earns a premium when it bids on new projects. Because it excels in its value engineering efforts, the Company is able to win bids at premium rates, and has earned a reputation for a commitment to cost savings throughout a project’s life cycle without sacrificing quality. The Company is non-union.

Transaction: The owner seeks to sell 100% of the business and is ready with his management team to partner with the new owner to drive growth. Real estate is available for purchase or lease. Owner will stay on for at least 1 year to insure a smooth transition. Seller expects significant improvement in 2018 revenue and EBITDA due to significant project backlog approaching $200 million, including a long-term agreement with a utility company.

 

Financial Data

2017 (through 11/30/17)
2016
2015
Revenue
 $18.1 mil
$25.4 mil
$14.4 mil
Adjusted EBITDA
$1.8 mil
$2.3 mil
$1.1 mil

Other Highlights
Location
Financials
Management Team in Place
Years in Business
SIC Classification
Western US
Reviewed
Yes
7
1611, 1623, 1629, 1794

   

Direct all Inquiries to:

Gottesman Company
Refer to:  S-2942-1 JPN
Tel: 212-330-8010     Fax: 646-434-4557