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The nation’s second largest full service demolition and remediation company Nuprecon/CST has acquired Maryland-based MARCOR Remediation, Inc., a leading environmental remediation contracting company. The transaction was facilitated through Nuprecon/CST’s majority owner, Seattle-based Evergreen Pacific Partners, which manages $700 million of equity and invests in private, traditional industry, middle-market companies in Western North America.
The combined entity will have in excess of 1,500 employees in more than a 20 offices and generate approximately $250 million in annual revenue. MARCOR’s significant presence and resources in the Northeast United States complement the strong West Coast and Southeast presence of Nuprecon/CST, giving the company a national footprint with a comprehensive offering of demolition, abatement and remediation services.
John Hennessy and Sage Khara, the founders of Nuprecon and CST respectively, which merged in early 2008, continue in their executive roles at Nuprecon/CST. MARCOR equity holders Dave Jungers, Chief Operating Officer, and Tim Miller Executive Vice President, will retain their leadership roles at MARCOR and continue to hold equity positions in the combined entity. MARCOR will continue to operate under its brand name.
Nuprecon/CST is the second largest full service demolition contractor in the United States. In addition to demolition services, the company offers a complete range of turnkey remediation and recovery services, including: concrete sawing, drilling, abatement services, C&D material recycling services and site preparation.
“There’s no doubt that this is the classic example of the whole being greater than the sum of its parts,” said John Hennessy, Nuprecon President. “Their service offerings and geographic locations are a perfect complement to ours.”
“MARCOR immediately gives us the ability to offer our customers more services in more locations,” said Sage Khara, president of CST Environmental. “MARCOR is extremely well respected in the industry for having a top caliber management team and the highest quality of service.”
“With the access to capital provided by Evergreen Pacific Partners alongside the complementary service offerings and geographic locations, we’re poised for tremendous growth,” said Dave Jungers. “But the fit goes beyond that to include our shared cultures of safety, service and results for our customers.”
Evergreen Pacific Partners invests in traditional buyouts, management led buyouts, and growth equity investments involving traditional industry, middle-market companies in the Western U.S. and Canada. To date, the firm has completed seven transactions involving companies in Washington, Arizona, California and Maryland in the manufacturing, distribution, construction, radio, cable television and consumer industries. Earlier this year the company closed a $425 million fund, its second.
About MARCOR
MARCOR Remediation, Inc. provides abatement and remediation contracting services for industrial, commercial, local, state, and federal agencies nationwide. Founded more than 25 years ago, the company combines strategic management capabilities with valuable, hands-on skills. MARCOR has safely and efficiently managed a broad range of environmental projects – from emergency response situations to long-range, planned remediation projects – from the very small job to complex, multi-million-dollar cleanups.
About Nuprecon/CST
Nuprecon/CST is the second largest full service demolition contractor in the United States. In addition to demolition services, the company offers a complete range of turnkey remediation and recovery services, including: concrete sawing, drilling, abatement services, C&D material recycling services and site preparation. The company has headquarter offices in Washington and California and regional offices in Hawaii, Oregon, Florida, Louisiana, North Carolina and Texas, employing more than 1,500 highly-trained professionals.
About Evergreen Pacific Partners
Based in Seattle, Wash., Evergreen Pacific Partners (www.eppcapital.com) currently manages two private equity funds totaling $700 million, with a focus on investing in traditional, middle-market companies in Western North America. Evergreen Pacific was co-founded by Timothy Bernardez, T. J. McGill, and Michael Nibarger. Evergreen Pacific’s acquisitions and investments include Western Broadband (Phoenix, Ariz.), Finest City Broadcasting (San Diego, Calif.), Gene Juarez Salons & Spas (Seattle, Wash.), Haney Truck Line (Yakima, Wash.), Nuprecon (Snoqualmie, Wash.), CST Environmental (Brea, Calif.) and MARCOR Remediation, Inc. (Hunt Valley, Md.).
Nuprecon is proud to achieve another low Experience Modification Rating (EMR) of 0.4739 for Washington State. This rate is based on two factors: the number of claims and the cost of each claim. In essence, contractors whose unsafe acts result in injury have a higher EMR than contractors who actively practice safety and mitigate claims.
Two of the nation's largest demolition contractors, Snoqualmie, Wash.-based Nuprecon, and Brea, Calif.-based CST Environmental have joined forces to form the nation's second largest full service demolition company. The transaction was facilitated through Nuprecon's majority owner, Seattle-based Evergreen Pacific Partners, a $275 million private equity fund based in the Pacific Northwest investing in private, traditional industry, middle-market companies in Western North America. The combined Nuprecon/CST entity has over 1,000 employees and a strong national presence. John Hennessy and Sage Khara, the founders of Nuprecon and CST respectively, both remain significant owners of the combined companies and will serve as President of each respective organization.
Founded in 1986 as a demolition specialist, Nuprecon has added a number of other specialty services over the years designed to streamline the process of full site preparation and construction. In addition to its core demolition services, Nuprecon offers concrete sawing and drilling services, abatement and remediation as well as C&D material recycling solutions (ReNu Recycling Services).
Founded in 1988 CST Environmental has completed several thousand demolition and environmental remediation projects and has extensive experience ranging from large industrial facilities, steel plants, refineries, and power plants to multi-floor commercial buildings, shopping centers and military bases. With offices in California, Florida, Louisiana, North Carolina and Texas, CST complements Nuprecon's market dominance in the Pacific Northwest and Hawaii.
"Nuprecon and CST have core strengths and individual advantages that, put together, make both companies stronger," said John Hennessy, Nuprecon's President. "This merger will allow us to provide more and better solutions to our customers and to accelerate the growth of both companies."
Nuprecon focuses on very technical demolition jobs such as Nordstrom headquarters in Seattle, the Pentagon and the Los Angeles International Airport terminal. CST focuses on total building removal. This complementary scope focus creates a single entity with a diverse range of turnkey services, as well as strong insurance and bonding capabilities with a national footprint.
"In this business, scale is critical to successful execution of projects as well as growth," said Sage Khara. "By combining the two companies, as well as with the access to capital from Evergreen Pacific Partners, we are well positioned to continue to provide the highest quality results, as well as grow the business."
The senior management teams from both companies remain in place and continue to own significant percentages of the company. John Hennessy will serve as President of Nuprecon and Sage Khara will serve as President of CST. The combined companies will focus on delivering a superior outcome to existing customers as well as expanding their customer base across the country.
This is the sixth transaction from Evergreen Pacific Partners private equity fund. In addition to equity from Evergreen Pacific, debt financing was led by Banc of America Capital Solutions, Prudential Capital Group and Prudential Capital Partners. Houlihan Lokey, an international investment bank, provided advisory services.
About Nuprecon/CST
The combined entities are the second largest full service demolition contractor in the United States. In addition to demolition services, the company offers a complete range of turnkey remediation and recovery services, including: concrete sawing, drilling, abatement services, C&D material recycling services and site preparation. The company has headquarter offices in Washington and California and regional offices in Hawaii, Oregon, Florida, Louisiana, North Carolina and Texas, employing more than 1,000 highly-trained professionals.
About Evergreen Pacific Partners
Evergreen Pacific Partners is a $275 million private equity fund based in the Pacific Northwest investing in private, traditional, middle-market companies in Western North America. Evergreen Pacific was co-founded by Timothy Bernardez, T. J. McGill, and Michael Nibarger. Evergreen Pacific's acquisitions and investments include Western Broadband (Phoenix, Ariz.), Finest City Broadcasting (San Diego, Calif.), Gene Juarez Salons & Spas (Seattle, Wash.) , Haney Truck Line (Yakima, Wash.), Nuprecon (Snoqualmie, Wash.) and CST Environmental (Brea, Calif.).