Bowman Consulting Group Ltd. (the “Company” or “Bowman”) (NASDAQ: BWMN), a national engineering services firm delivering infrastructure solutions to customers who own, develop, and maintain the built environment, today announced the acquisition of Hess-Rountree, Inc. (“Hess-Rountree”), a full-service engineering firm headquartered in Phoenix, Arizona.
With an emphasis on renewable energy, educational and sports facilities projects, Hess-Rountree provides comprehensive civil engineering, land surveying, contract administration, 3D laser scanning, UAV aerial mapping and photography and as-built BIM modelling services to a range of clients. All Hess-Rountree employees have joined Bowman in connection with the acquisition.
During its more than fifty years in business, Hess-Rountree has worked with over 70 school districts throughout Arizona. The firm has successfully completed over 800 educational facility projects for new and existing elementary, middle school, high school and higher-education campuses. Additionally, the company has growing practices in the design of athletic fields and courts and renewable energy projects. Led by current president Doug Osborn, PE., the firm has expanded to serve a diverse range of public and private sector, institutional and tribal clients throughout Arizona.
“Hess-Rountree has geographic adjacency with our Arizona operations and their experience will immediately contribute to several of our national practice areas,” said Gary Bowman, chairman and CEO of Bowman. “When we first met Doug and his team, we were aware of their extensive portfolio of projects throughout the Arizona educational market. The more we got to know their business it became apparent to us just how entrenched they are in their markets and how they have earned their impressive reputation. We see many opportunities for synergy in this acquisition and are excited to get started with integration.”
“Joining with Bowman is the right decision at the right time for us,” said Doug Osborn, P.E., president of Hess-Rountree. “Having been around Bowman in Arizona for many years, we know their people and we have followed their extraordinary growth story. Bowman’s local, regional and national platform presents opportunities for our firm and our people to grow well beyond what we have already accomplished. We all look forward to applying our relationships and skills from within Bowman to help achieve the company’s long-term strategic growth objectives.”
Financed with a combination of cash, seller notes and equity, the acquisition falls within previously discussed target multiples and operating metric ranges and is expected to be immediately accretive. The Company anticipates the acquisition will initially operate at an annualized net service billing run rate of approximately $3 million. More detailed information on M&A activities, pipeline and guidance updates are provided in connection with scheduled quarterly and annual communications.
About Hess-Rountree, Inc.
For over fifty years, Hess-Rountree has provided civil engineering, land surveying and infrastructure planning services to public and private sector clients throughout Arizona. Specializing in educational and athletic facilities, along with commercial, municipal and institutional development projects, the firm has worked with over 70 school districts throughout the State of Arizona and successfully completed over 800 projects for new and existing elementary, middle school, high school, and collegiate campuses. In addition, Hess-Rountree has a growing renewable energy practice. For more information on Hess-Rountree, their projects, and their services, visit www.hessrountree.com.