Posted on April 13, 2017
Orion Group Holdings, Inc. (NYSE: ORN) announced today the acquisition of Tony Bagliore Concrete, Inc. (“TBC”) for $6 million in cash. Founded in 2010, TBC is a full-service concrete contractor that provides turnkey services covering all phases of commercial concrete construction in Central Texas. In addition to the upfront purchase price, the sellers have an opportunity to earn an additional $2 million over a three year period based on achievement of certain financial targets.
Through 200 dedicated employees, TBC specializes in tilt-wall construction, parking structures, concrete slabs for commercial and institutional applications, curbs, gutters and paving, among other capabilities. TBC currently operates in the Austin, Texas metropolitan area with full year 2016 revenue of approximately $32 million and full year 2016 EBITDA of approximately $2.5 million. TBC currently has a $40 million backlog of work under contract.
“TBC is a proven concrete contractor with a strong reputation for quality, safety and reliability in the greater Austin-area market, which is a market we have targeted for entry,” stated Mark Stauffer, Orion Group Holding’s President and Chief Executive Officer. “The Central Texas market continues to experience tremendous growth in nonresidential construction as a result of significant population changes. Population in the Central Texas area is expected to more than double by 2050, with significant development along the I-35 corridor from San Antonio through Austin to Waco.”
Mr. Stauffer continued, “TBC provides an entry for our TAS business to move into the Central Texas market and will serve as a platform for future growth. We will rebrand TBC as TAS Commercial Concrete and operate under one common brand for our commercial concrete segment. As a result, we expect TBC to provide additional growth for our TAS Commercial Concrete segment, which has performed extremely well for us since our acquisition of TAS in August 2015. Additionally, we believe TBC will be neutral to slightly accretive to our 2017 earnings.”