On November 4 2014 Great Lake Dredge & Dock acquired the stock of Magnus Pacific Corporation which provides environmental remediation geotechnical construction demolition and sediments and wetlands construction for an aggregate purchase price of approximately $40 million. Magnus is now part of the GLDD Environmental & Remediation segment along with Terra Contracting LLC acquired in December 2012.
The company adds approximately $90 million to Great Lakes’ backlog primarily from a contract for an abandoned copper mine remediation project 25 miles north of Chelan Washington. The project includes installation of a 90-foot-deep barrier wall to divert copperladen water away from a river and into a water treatment plant.
Headquartered outside of Sacramento and with regional offices in Dallas Denver and Seattle Magnus offers levee rehabilitation and repair slurry wall construction mine reclamation ground stabilization and wetlands improvements.
Great Lakes CEO Jon Berger stated “The Magnus acquisition represents another milestone in our long-term strategic vision of becoming a preeminent environmental services provider. With the addition of Magnus Pacific to the strong platform we have in place with Terra Contracting we have expanded our geographic footprint across the United States and broadened our suite of capabilities. We look forward to building on the success that our historic dredging business and Terra have had as we continue to execute on complex projects – on both land and water – to the most demanding clients in the nation.”
Kyle Johnson Great Lakes COO added “Over the course of our due diligence we were pleased with Magnus’ dedication to project execution and commitment to safety which are key values at Great Lakes. We were also impressed with their operating expertise and professionalism which will provide a strong foundation for integrating our core competencies. We look forward to working with the Magnus team during the integration and beyond as we grow our presence in the environmental and geotechnical space.”
Magnus Founder Louay Owaidat stated “It was very important to Magnus senior management to find the right fit for our company and we have found that in Great Lakes. With a shared vision to grow and expand we look forward to a strong partnership with the Great Lakes and Terra team.”
The transaction included $25 million in cash at closing a seller’s note with an approximate value of $14 million and a potential earn-out. The former Magnus shareholders will become employees of Great Lakes and as material inducements were granted restricted stock unit awards representing the right to receive up to 1500000 shares of Great Lakes’ common stock