Los Angeles investment firm Peninsula Pacific Strategic Partners LLC has acquired Denver-based Brundage-Bone Concrete Pumping Inc., the largest concrete pumping service in the U.S., in a $171-million deal that completes the firm's return from bankruptcy. The transaction represents a "relatively new platform" for Peninsula, says Joshua Phillips, managing partner. It is among the firm's first ventures into construction.
Brundage-Bone officials say the deal, completed on Aug. 18, will not affect its 550 employees or any of its current offices. The merger fulfilled the last remaining condition of Brundage-Bone's 2010 Chapter 11 filing, which required the firm to monetize the equity of its investors within two to five years, CEO Bruce Young told ENR. "Our investors were paid 100¢ on the dollar, so this was a success for everyone," he says.
Brundage-Bone emerged from nearly $250 million in debt in November 2011. "We rebounded quickly after the recession, and the equity partners got a great return," he says. "We are already upgrading our equipment, and we're looking for acquisition opportunities." Phillips says the purchase creates a "bullet-proof capital structure, with no maintenance covenants." The Peninsula team was comfortable with the deal because Brundage-Bone is "a clear market-share leader" and the firm's management team "partnered in the investment," he says.
Brent Stevens, chairman of Peninsula Pacific, said in a statement that, "in addition to its differentiated equipment fleet and highly skilled employees, [Brundage-Bone] has outstanding relationships with a deep network of national and local contractors across numerous markets."
Brundage-Bone management is now part of the new ownership group. "We've equipped them with the right type of capital structure," Phillips says.
Brundage-Bone has 51 locations in 16 states in the West, Midwest and South-Central regions. Recent projects include the Paine Field Control Tower in Everett, Wash.; the Denver Zoo's Toyota Elephant Passage and several wind farms.