Parsons to Acquire BCC Engineering
Rhea-AI Summary
Parsons (NYSE:PSN) has announced its agreement to acquire BCC Engineering, for $230 million in an all-cash transaction. BCC, a leading transportation engineering firm, provides services in Florida, Georgia, Texas, South Carolina, and Puerto Rico. This acquisition aligns with Parsons' strategy to expand its infrastructure capabilities in the Southeast U.S., an area benefiting from significant federal highway funding.
The acquisition is expected to strengthen Parsons' position as an infrastructure leader and enhance its service offerings. BCC will be integrated into Parsons' North America Infrastructure business unit. The net transaction value of $221 million represents approximately 13.0x BCC's estimated 2025 EBITDA. For 2025, Parsons anticipates BCC to generate about $110 million in gross revenue and contribute positively to Parsons' revenue growth and adjusted EBITDA margins.
Positive
- Acquisition valued at $230 million, strengthening Parsons' infrastructure capabilities
- Expands Parsons' reach in the Southeastern U.S., an area with significant federal highway funding
- BCC expected to generate $110 million in gross revenue for 2025
- Acquisition aligns with Parsons' strategy of acquiring high-growth companies
- Transaction expected to be accretive to Parsons' revenue growth and adjusted EBITDA margins
Negative
- None.
Insights
The acquisition of BCC Engineering by Parsons for
Key financial aspects:
- Net transaction value:
$221 million (including$9 million tax benefits) - Valuation multiple: 13.0x BCC's estimated 2025 EBITDA
- Expected 2025 revenue contribution:
$110 million - Impact: Accretive to Parsons' revenue growth and adjusted EBITDA margins
This acquisition positions Parsons to capitalize on the
Parsons' acquisition of BCC Engineering marks a significant expansion in the Southeastern U.S. infrastructure market. BCC's expertise in transportation, civil and structural engineering complements Parsons' existing capabilities and enhances their competitive position in a region poised for substantial infrastructure investment.
Key strategic benefits:
- Expanded service offerings in high-growth markets
- Access to BCC's strong relationships with state DOTs, particularly in Florida
- Enhanced ability to tackle large, complex roadway and bridge projects
- Improved positioning to capture IIJA-funded projects
The integration of BCC into Parsons' North America Infrastructure unit should create synergies in project delivery and technology adoption. This move aligns with the industry trend of consolidation to build comprehensive service offerings and compete for larger, more complex infrastructure projects. The acquisition could significantly strengthen Parsons' market position and growth prospects in the rapidly evolving infrastructure sector.
Acquisition strategically enhances Parsons’ infrastructure capabilities in the Southeast U.S.
CHANTILLY, Va., Oct. 21, 2024 (GLOBE NEWSWIRE) -- Parsons Corporation (NYSE:PSN) announced today that it has entered into a definitive agreement to acquire BCC Engineering, LLC (BCC), one of Florida's leading transportation engineering firms, in an all-cash transaction valued at
BCC, a portfolio company of Trivest Partners, is a full-service engineering firm that provides planning, design, and management services for transportation, civil, and structural engineering projects in Florida, Georgia, Texas, South Carolina, and Puerto Rico. This acquisition strengthens Parsons’ position as an infrastructure leader while expanding the company’s reach in the Southeastern United States, an area where the Infrastructure Investment and Jobs Act (IIJA) provided approximately
“Parsons’ acquisition of BCC represents another important milestone in our mission to advance mobility solutions across North America,” said Carey Smith, Parsons' chair, president, and chief executive officer. “The addition of BCC’s talented team expands our service offerings and furthers our impact during this transformative era for infrastructure. Our collaboration will enable us to drive progress, foster economic growth, and ultimately create more connected and resilient infrastructure across the nation. I am excited to welcome BCC into Parsons.”
Established in Miami, FL, in 1994, BCC is known for its innovative, best-in-class solutions for some of Florida's largest and most complex roadway and bridge projects. The company has delivered over 100 major projects serving every district for the Florida Department of Transportation and is one of the fastest-growing transportation engineering firms in the southeast U.S. BCC has also been consistently recognized as a top place to work by the Sun Sentinel, and a Top 500 design firm by the Engineering News Record (ENR).
“We are excited to become part of Parsons’ team,” said Jose Muñoz, BCC’s president & CEO. “This acquisition marks a significant milestone for both of our organizations and represents a shared vision for the future of infrastructure in our communities. Parsons is a leader in the digitization of design and delivery of infrastructure, and this provides our team the opportunity to be at the forefront of the industry. Together we’re unlocking the potential of transportation infrastructure for our customers and communities where we live and work.”
Parsons and BCC have worked closely for years on critical infrastructure projects and, through collaboration and client-focused strategy, will continue to unlock additional value and impact for clients worldwide. The net transaction value of
About Parsons
Parsons (NYSE: PSN) is a leading disruptive technology provider in the national security and global infrastructure markets, with capabilities across cyber and intelligence, space and missile defense, transportation, environmental remediation, urban development, and critical infrastructure protection. Please visit parsons.com and follow us on LinkedIn and Facebook to learn how we're making an impact.
Forward-Looking Statements
This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on our current expectations, beliefs and assumptions, and are not guarantees of future performance. Forward-looking statements are inherently subject to uncertainties, risks, changes in circumstances, trends, and factors that are difficult to predict, many of which are outside of our control. Accordingly, actual performance, results, and events may vary materially from those indicated in the forward-looking statements, and you should not rely on the forward-looking statements as predictions of future performance, results, or events. Numerous factors could cause actual future performance, results and events to differ materially from those indicated in the forward-looking statements, including, among others: any issue that compromises our relationships with the U.S. federal government or its agencies or other state, local, or foreign governments or agencies; any issues that damage our professional reputation; changes in governmental priorities that shift expenditures away from agencies or programs that we support; our dependence on long-term government contracts, which are subject to the government’s budgetary approval process; the size of our addressable markets and the amount of government spending on private contractors; failure by us or our employees to obtain and maintain necessary security clearances or certifications; failure to comply with numerous laws and regulations; changes in government procurement, contract or other practices or the adoption by governments of new laws, rules, regulations, and programs in a manner adverse to us; the termination or nonrenewal of our government contracts, particularly our contracts with the U.S. federal government; our ability to compete effectively in the competitive bidding process and delays, contract terminations, or cancellations caused by competitors’ protests of major contract awards received by us; our ability to generate revenue under certain of our contracts; any inability to attract, train, or retain employees with the requisite skills, experience, and security clearances; the loss of members of senior management or failure to develop new leaders; misconduct or other improper activities from our employees or subcontractors; our ability to realize the full value of our backlog and the timing of our receipt of revenue under contracts included in backlog; changes in the mix of our contracts and our ability to accurately estimate or otherwise recover expenses, time and resources for our contracts; changes in estimates used in recognizing revenue; internal system or service failures and security breaches; and inherent uncertainties and potential adverse developments in legal proceedings, including litigation, audits, reviews, and investigations, which may result in materially adverse judgments, settlements, or other unfavorable outcomes. These factors are not exhaustive and additional factors could adversely affect our business and financial performance. For a discussion of additional factors that could materially adversely affect our business and financial performance, see the factors included under the caption “Risk Factors” in our Registration Statement on Form S-1 and our other filings with the Securities and Exchange Commission. All forward-looking statements are based on currently available information and speak only as of the date on which they are made. We assume no obligation to update any forward-looking statement made in this presentation that becomes untrue because of subsequent events, new information or otherwise, except to the extent we are required to do so in connection with our ongoing requirements under federal securities laws.
Media Contact:
Bryce McDevitt
+1.703.851.4425
Bryce.McDevitt@parsons.com
Investor Relations Contact:
Dave Spille
+ 1.571.655.8264
Dave.Spille@parsons.us
FAQ
What is the value of Parsons 's acquisition of BCC Engineering?
How will the acquisition of BCC Engineering affect Parsons' financial performance?
What regions will Parsons expand into with the BCC Engineering acquisition?
When is the Parsons-BCC Engineering acquisition expected to close?
