Inland Pipe Rehabilitation, a portfolio company of J.F. Lehman & Company, has acquired Inliner, the trenchless and pipe rehabilitation services business of Granite Construction, for $159.7 million.
Inliner’s services include resin- and UV-based cured-in-place-pipe solutions, geopolymer liner and construction management services. Many of Inliner’s customers are wastewater and stormwater systems operated by United States and Canadian government entities. For instance, Inliner has for the past 15 years partnered with the City of Chicago on a multi-year program to improve Chicago’s aging sewer systems.
Assets included in the $159.7 million acquisition, all of which were acquired by Granite in 2018, are Inliner, Liner Products, Inliner Technologies and Liquiforce.
Inland Pipe Rehabilitation (IPR) is a provider of trenchless pipe rehabilitation services – which allow for the completion of underground repair or replacement projects with minimal surface and environmental disruption – to the municipal wastewater and stormwater markets. IPR’s technical and operational capabilities include cured-in-place pipe, pipe bursting, and geopolymer spray lining. IPR, led by CEO Jim Baumgardner, has approximately 450 employees and is headquartered near Atlanta in Conyers, Georgia.
“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, the chairman of IPR and a partner at J.F. Lehman.
J.F. Lehman acquired IPR in December 2018 from Strength Capital Partners. The acquisition of Inliner is the second add-on completed by IPR under J.F. Lehman and follows the buy of Murphy Pipeline Contractors in September 2020.
“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, a managing director at J.F. Lehman.
Granite Construction (NYSE: GVA), founded in 1922, is one of the oldest and largest diversified construction and construction materials (asphalt concrete, aggregates, specialty sands and rock) companies in the United States. The Watsonville, California-headquartered company, led by CEO Kyle Larkin, is a provider of construction and complex infrastructure services to the transportation, water infrastructure and mineral exploration markets.
“I’m pleased to announce the completion of the Inliner sale,” said Mr. Larkin. “This sale and the expected sales of the Water Resources and Mineral Services businesses are important steps in the implementation of our new strategic plan and will allow us to focus on our core competencies in civil construction and materials. We expect to use the proceeds from the sales to strengthen and grow our vertically-integrated businesses, pay down debt, and return value to shareholders through share repurchases.”
J.F. Lehman is a middle-market private equity firm focused primarily on the maritime, defense and aerospace sectors. The firm was founded in 1992 by Dr. John Lehman, who served six years as Secretary of the United States Navy. J.F. Lehman is headquartered in New York City with an additional office in Washington, DC.
Perella Weinberg Partners is the financial advisor and Shearman & Sterling is the legal advisor to Granite on this transaction. Houlihan Lokey is the financial advisor to IPR.
© 2022 Private Equity Professional | March 31, 2022
