Northwest Pipe Company announces the acquisition of ParkUSA

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VANCOUVER, Washington., October 5, 2021 / PRNewswire / – Northwest Pipe Company (Nasdaq: NWPX), an industry leader in technical piping systems for hydraulic infrastructure, today announced the acquisition of Park Environmental Equipment, LLC (“ParkUSA”) for $ 870.4 million, net of cash acquired. ParkUSA is a precast concrete and steel fabrication company that develops, manufactures and distributes infrastructure solution products for water, wastewater and the environment. The acquisition should be immediately accretive to profits. The transaction closed on October 5, 2021.

“We are delighted 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 enclosures that serve as containment units for the majority of their products, using some of the same capabilities as our existing Northwest Pipe plants. As a result, we will focus on producing ParkUSA The strong organic growth potential, margin characteristics, asset efficiency and cash flow profile have been key factors in this acquisition and will remain critical as we move forward. let’s press the $ 66$ 0.5 million in revenue and $ 14 million in adjusted EBITDA generated by ParkUSA for full year 2020. “

“We are very excited to join the Northwest Pipe family and see the transaction as a great opportunity to expand the reach of our products now that we are part of a larger organization,” said Chris Eberly, CEO of ParkUSA.

Georges Eberly III, ParkUSA COO added, “We look forward to participating in Northwest Pipe Company’s growth plans for the future.

The acquisition was funded through the company’s credit facility with Wells Fargo Capital Finance, which included a fully committed $ 25 million accordion feature to expand the company’s access to available cash. Short-term repayment of outstanding debt will be a priority and will flow from the cash flow of the combined business.

Previously a private company, ParkUSA was founded in Houston, texas in 1984 by the Eberly family. In 2020, it had around 280 employees and a turnover of $ 66.5 millions. The three existing ones of ParkUSA Texas manufacturing facilities located in Houston, Dallas, and San Antonio will further expand Northwest Pipe Company’s presence in the booming industry Texas hydraulic infrastructure market.

The closing 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, he acquired Geneva pipe and Precast Company.

Conference call on transactions – Northwest Pipe Company will host a conference call on Wednesday, October 6, 2021 at 8 a.m. PT to discuss the transaction. To view the additional slide presentation or listen to the live audio webcast, visit the Northwest Pipe Company website at www.nwpipe.com on the Investor Relations page. For those who cannot listen to the live audio webcast, a replay will be available approximately one hour after the event on the Investor Relations page.

About Northwest Pipe Company – Founded in 1966, Northwest Pipe Company is a leading manufacturer of water related infrastructure products. In addition to being the largest manufacturer of steel water piping systems North America, the company manufactures high quality precast and reinforced concrete products, Permalok® steel casing tubes, bar wrapped concrete cylindrical tubes, as well as liners, liners, joints and one of the largest specialized fittings and components offers. Northwest Pipe Company provides solution-based products for a wide range of markets including water transmission and infrastructure, water and wastewater plant piping, structural stormwater systems and sewerage, trenchless technology and pipeline rehabilitation. Strategically positioned to meet growing water and wastewater infrastructure needs, the company is headquartered in Vancouver, Washington, and has manufacturing facilities across North America. Please visit www.nwpipe.com for more information.

Forward-looking statements – The statements contained in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended, which are based on expectations , current estimates and projections regarding the activities of the Company, the beliefs of the management and the assumptions made by the management. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual results and results may differ materially from what is expressed or expected in these forward-looking statements due to various important factors. While it is impossible to identify all of these factors, those that could cause actual results to differ materially from those estimated by the Company include changes in market demand and prices for its products, product line , tendering and order cancellations, timing of customer orders and deliveries, production schedules, raw material prices and availability, excess or insufficient production capacity, international trade policy and regulation, tariff changes and duties imposed on imports and exports and related impacts on the Company, the ability of the Company to identify and complete initiatives and / or acquisitions in order to develop its business, the ability of the Company to integrate effectively Geneva pipe and Precast Company, ParkUSA, and other acquisitions in its business and operations and achieve significant administrative and operational cost synergies and increase financial results, the impacts of recent US tax reform legislation on the operating results of the Company, the adequacy of the Company’s insurance coverage, problems in the Company’s manufacturing operations, including fires, explosions, inclement weather and natural disasters, the impacts of pandemics, epidemics or d ” other public health emergencies, such as coronavirus disease 2019, and other risks discussed in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2020 and from time to time in its other documents and reports of the Securities and Exchange Commission. These forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances subsequent to the date of this release. If the Company updates or corrects one or more forward-looking statements, investors and others should not conclude that it will make any additional updates or corrections to them or to other forward-looking statements.

Non-GAAP financial measures – The Company presents Adjusted EBITDA, which is a non-GAAP financial measure provided to better enable investors and others to assess results and compare them with those of their competitors. This should be viewed as a supplement, not a substitute or superior to financial measures calculated in accordance with GAAP.

Contact:
Aaron Wilkins
Financial director
North West Pipe Company
360-397-6294 • [email protected]

SOURCE Northwest Pipe Company

Related links

www.nwpipe.com


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