PE Firms Build Foundation in Construction and Engineering
June 25, 2012
CHA Consulting, a portfolio company of Long Point Capital, has acquired RW Armstrong to create a diversified worldwide engineering firm with 1,250 employees and more than $210 million in revue. Following the deal, RW Armstrong will retain its name and operate as a fully owned subsidiary. Long Point Capital acquired CHA Consulting through a buyout in 2008 and sponsored its add-on of Gryphon International Engineering in 2011.
Since the beginning of 2009, PE investors have invested in 80 companies in the Construction and Engineering sector. Deal activity in the sector has been accelerating in recent years, with a record-breaking 38 deals in 2011. Despite a slight decrease in deal flow in recent months, PE firms are still on track to acquire at least 30 companies from the sector in 2012. Add-on deals have accounted for 30% of the activity in Construction and Engineering since 2009, although the RW Armstrong deal was the first add-on of the 15 deals that have closed so far this year.
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