Bowman Consulting Group Ltd. (the “Company” or “Bowman”)
(NASDAQ: BWMN), today announced that it closed on the acquisition
of McMahon Associates, Inc. (“McMahon”), a company specializing in
delivering a full range of innovative transportation planning and
engineering services to private and public sector clients. Founded
in 1976 and headquartered in Fort Washington, Pennsylvania, McMahon
focuses on projects oriented to roads and bridges; traffic and
parking; signals and ITS (intelligent transportation systems);
community transportation; and public transit. The firm is comprised
of over 200 dedicated professionals working out of fifteen offices
located throughout New England, the Mid-Atlantic, and Florida.
The Company expects the McMahon acquisition to initially
contribute approximately $28 million of annualized transportation
infrastructure revenue and be immediately accretive. At closing,
the Company paid $18.3 million through a combination of cash,
seller notes and 476,796 shares of restricted common stock subject
to a six-month lock-up agreement. The transaction was structured as
a stock purchase with a joint election to treat the acquisition as
an asset sale pursuant to the Internal Revenue Code. As such,
determination of the final acquisition cost is subject to
adjustment based on customary post-closing purchase price
accounting.
“McMahon is well respected throughout the transportation field
and will be an outstanding addition to our firm,” said Gary Bowman,
CEO of Bowman. “Their leadership and team of consummate
professionals bring tremendous value to our staff, our clients, and
our shareholders. As we have gotten to know McMahon’s business, we
have become highly confident that this complementary combination
will have a long-term positive impact that will be much greater
than the sum of the parts.”
“The array of transportation services we can collectively
provide our clients will continue to grow as client needs dictate,
while we continue to deliver on our commitment to personalized
attention on every project,” added Bowman. “The addition of McMahon
will provide a broad platform from which to continue growing our
share of the transportation market throughout the nation. We are
just getting started on our 2022 acquisition program and I am
pleased that we continue to deliver on our commitment to strategic
growth in such a meaningful way. Everyone at Bowman joins me in
welcoming the employees, clients, and business partners of
McMahon.”
“For over 45 years, McMahon has specialized in delivering
forward-looking transportation, planning, engineering and
technology solutions to our clients”, said Joseph DeSantis,
President, and CEO of McMahon. “Our success is the result of the
commitment and dedication of our employees, many of whom have been
with the firm for most of their professional careers. Bowman is a
well-established and culturally compatible firm with services that
are complementary to ours. By joining up with Bowman, we gain
access to new resources and technologies that allow for an even
greater investment in the delivery of innovative transportation
solutions to our clients, while continuing to offer the same
personal attention and trusted relationships our clients have come
to expect from us.”
“This partnership between McMahon and Bowman highlights the
alignment of our cultures, our focus on growth and opportunity for
our people, and our combined entrepreneurial spirit,” added
DeSantis. “McMahon has always been thankful for our clients and
committed to contributing to our communities. We look forward to
continuing in this fashion with Bowman’s first-rate
organization.”
The acquisition is Bowman’s second of 2022 following the
acquisition of Perry Engineering earlier this year.
“This is a significant step toward our stated goal of acquiring
$75 million of annualized net revenue this year,” said Bruce
Labovitz, Bowman’s CFO. “The addition of McMahon nearly triples our
transportation infrastructure business which will, over time,
meaningfully impact our composition of revenue by market. While the
acquisition is within our target multiple range, we believe
McMahon’s operating margins will benefit from being part of Bowman
and ultimately reduce the effective multiple. As is our practice,
we will provide more detailed information on our M&A activities
and communicate updates to guidance in connection with our upcoming
earnings call on May 12, 2022.”
About McMahon Associates, Inc.
Since 1976, McMahon has specialized in delivering a broad array
of innovative transportation planning and engineering services to
private and public sector clients. The firm has built trusted and
lasting relationships by surpassing the expectations of its
clients. With over 200 dedicated professionals working out of 15
offices throughout the East Coast, McMahon has the talent,
experience, and expertise to take on any transportation challenge.
Additional information on McMahon, its team, and its projects can
be found at mcmahonassociates.com.
About Bowman Consulting Group Ltd.
Headquartered in Reston, Virginia, Bowman is an engineering
services firm delivering infrastructure solutions to customers who
own, develop, and maintain the built environment. With over 1,100
employees and more than 45 offices throughout the United Sates,
Bowman provides a variety of planning, engineering, construction
management, commissioning, environmental consulting, geomatics,
survey, land procurement and other technical services to customers
operating in a diverse set of regulated end markets. Bowman trades
on the Nasdaq under the symbol BWMN. For more information, visit
www.bowman.com or investors.bowman.com.
Forward-Looking Statements
This press release may contain “forward-looking statements”
within the meaning of the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995. All statements
contained in this press release other than statements of historical
fact, including statements regarding our future results of
operations and financial position, business strategy and plans and
objectives for future operations, are forward-looking statements
and represent our views as of the date of this press release. The
words “anticipate”, “believe”, “continue”, “estimate”, “expect”,
“intend”, “may”, “will”, “goal” and similar expressions are
intended to identify forward-looking statements. We have based
these forward-looking statements on our current expectations and
projections about future events and financial trends that we
believe may affect our financial condition, results of operations,
business strategy, short-term and long-term business operations and
objectives and financial needs, These forward-looking statements
are subject to several assumptions and risks and uncertainties,
many of which involve factors or circumstances that are beyond our
control that could affect our financial results. The Company
cautions that these statements are qualified by important factors
that could cause actual results to differ materially from those
reflected by the forward-looking statements contained in this news
release. Such factors include: (a) changes in demand from the local
and state government and private clients that we serve; (b) general
economic conditions, nationally and globally, and their effect on
the market for our services; (c) competitive pressures and trends
in our industry and our ability to successfully compete with our
competitors; (d) changes in laws, regulations, or policies; and (e)
the “Risk Factors” set forth in the Company’s most recent SEC
filings. Considering these risks, uncertainties and assumptions,
the future events and trends discussed in this press release may
not occur and actual results could differ materially and adversely
from those anticipates or implied in any forward-looking
statements. Except as required by law, we are under no obligation
to update these forward-looking statements after the date of this
press release, or to update the reasons if actual results differ
materially from those anticipated in the forward-looking
statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20220503006338/en/
Investor Relations Contacts Bruce Labovitz ir@bowman.com
(703) 787-3403 Megan McGrath mmcgrath@finprofiles.com (310)
622-8248
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