IPR Acquiring Inliner from Granite Construction
To enhance its capabilities and service solutions and expand its presence throughout North America, Inland Pipe Rehabilitation (IPR) announced its acquisition of Inliner from Granite Construction Inc.
Inliner is a vertically integrated provider of trenchless pipe rehabilitation solutions addressing wastewater and storm water infrastructure.
Since 1927, the company has established a reputation as a leader in resin- and UV-based cured-in-place-pipe solutions, geopolymer liner and construction management services, supporting government customers across the United States and Canada. The company’s services are strengthened and supported by market-leading manufacturing capabilities.
RELATED: Granite Construction Emerges as Top Trenchless Player
Included in the $159.7 million acquisition are Inliner, Liner Products, Inliner Technologies and Liquiforce. All which Granite acquired in 2018. The sale is part of several actions designed to position the Granite to focus on efficiently growing its core civil construction and materials business.
The sale has been unanimously approved by Granite’s Board of Directors and is subject to customary covenants and closing conditions. Granite intends to divest the two remaining businesses within the Water and Mineral Services operating group, Water Resources and Mineral Services, as well.
“Today’s announcement marks a significant step in the implementation of our new strategic plan,” explained Kyle Larkin, Granite president and CEO. “The divestiture of Inliner and the planned divestitures of Water Resources and Mineral Services reflect our strategy to refocus on our core civil construction and materials business, streamline operational support functions, improve overhead efficiency and better leverage economies of scale. Our vertically integrated business has been Granite’s strength for decades, and we plan to continue to build our positions in these well-established markets and be opportunistic in pursuing expansion. As we celebrate our centennial year, I want to thank all of our employees for their contributions to Granite.”
IPR is a portfolio company of investment affiliates of J.F. Lehman & Company (JFLCO). Inliner is the second add-on acquisition completed by IPR under JFLCO sponsorship. The first was the acquisition of Murphy Pipeline Contractors in 2018.
Founded in 1973, IPR is a leading water infrastructure services company providing diversified trenchless pipe rehabilitation solutions and technologies for municipal waste, storm and potable water applications. IPR’s capabilities deliver minimally disruptive, cost-effective solutions for government customers to actively manage aging underground pipe infrastructure. IPR is headquartered in Conyers, Georgia, with operating locations throughout the United States.
RELATED: Inland Pipe Rehabilitation Acquires Murphy Pipeline Contractors
“We believe the combination of IPR and Inliner will further strengthen both organizations and provide our customers with a breadth and depth of service unmatched across our industry,” said Jim Baumgardner, CEO of IPR. “We are excited to welcome Inliner into the IPR family.”
“This is a compelling opportunity to establish a unique service provider in this market – a national presence, delivering scaled capabilities across numerous technologies and delivery methods, addressing storm, waste and potable water infrastructure,” said Glenn Shor, chairman of IPR and partner at JFLCO.
“The addition of Inliner builds upon the acquisition of Murphy Pipeline Contractors in our strategy to support the IPR platform through strategic M&A and organic growth initiatives” added Dave Thomas, managing director at JFLCO.
The agreement, which is subject to customary closing conditions, is expected to close in the first half of 2022.
Jones Day is providing legal counsel and Houlihan Lokey is serving as exclusive financial advisor to IPR and JFLCO. Perella Weinberg Partners is serving as exclusive financial advisor and Shearman & Sterling is providing legal counsel to Granite. Financing for the transaction will be provided by Atlantic Park Strategic Capital Fund L.P. Monroe Capital LLC will remain administrative agent to IPR’s senior credit facility.
SOURCE – Granite Construction and J.F. Lehman & Company
