IPS-Integrated Project Services LLC, a unit of Alleghany Capital Corp, said April 1 that it agreed to buy a majority of the Cardinal Group Inc. Financial terms weren’t announced. Cardinal, of Woburn, Massachusetts, provides construction management services to the life science and healthcare markets in the Northeastern United States.
NEW YORK, April 1, 2019 — Alleghany Capital Corporation (“Alleghany Capital”), a wholly-owned subsidiary of Alleghany Corporation, today announced that its subsidiary, IPS-Integrated Project Services, LLC (“IPS”), a leading provider of design, engineering, procurement, construction management, and validation (“EPCMV”) services for the biotechnology and pharmaceutical industries, has reached a definitive agreement to acquire a majority interest in The Cardinal Group, Inc. (“Cardinal” or the “Company”). Headquartered in Woburn, Massachusetts, Cardinal provides construction management services to the life science and healthcare markets in the Northeastern United States.
“We are thrilled to partner with Bill Held, Cardinal’s Founder and President, as well as his strong leadership team and exceptional staff, to provide our unique brand of technology-based EPCMV services to clients in the greater New England area,” said Dave Goswami, President and Chief Executive Officer of IPS. “With Bill and his dedicated team continuing to lead Cardinal post-closing, the Company’s day-to-day operations will not change. However, with Cardinal joining IPS’s global platform, we see this combination as a differentiator in the marketplace, allowing us to jointly expand our superior service offering to clients.”
Bill Held added, “Cardinal was founded in 2014 with the mission of building a team of highly specialized and talented construction management professionals that could assist clients in the life science industry execute critical projects. With an established team and a strong track record of successfully completing projects for our clients, we are now ready to accelerate our growth by partnering with a larger organization that shares our values and approach to business. We are excited to have found long-term partners in IPS and Alleghany Capital and believe that, through this transaction, we will be better positioned to pursue the numerous opportunities we see in our market.”
David Van Geyzel, President and Chief Executive Officer of Alleghany Capital, commented, “This transaction will expand IPS’s presence in one of the leading and fastest growing biopharmaceutical hubs in the country and is consistent with its strategy of supplementing organic growth with targeted add-on acquisitions. Alleghany Capital looks forward to supporting IPS and Cardinal as they work together to assist their clients in addressing the world’s healthcare needs.”
The transaction, which is subject to customary closing conditions, is expected to close during the second quarter of 2019.
Ballard Spahr LLP acted as legal counsel to IPS and McLane Middleton acted as legal counsel to Cardinal.
About Alleghany Capital Corporation
Alleghany Capital Corporation owns and manages a diverse portfolio of middle market businesses for its parent company, Alleghany Corporation (NYSE: Y). Alleghany Capital’s industrial businesses include: (i) Bourn & Koch, Inc., a manufacturer of specialty machine tools and a supplier of replacement parts, accessories, and services for a variety of cutting technologies; (ii) R.C. Tway Company, LLC (dba Kentucky Trailer), a manufacturer of custom trailers and truck bodies for several niche end markets; (iii) WWSC Holdings, LLC, a structural steel fabricator and erector for commercial, manufacturing, and transportation infrastructure projects; and (iv) Wilbert Funeral Services, Inc., a provider of products and services for the funeral and cemetery industries and precast concrete market. Alleghany Capital’s non-industrial businesses include: (i) Concord Hospitality Enterprises Company, a hotel management and development company; (ii) IPS-Integrated Project Services, LLC, a provider of design, engineering, procurement, construction management, and validation services for the pharmaceutical and biotechnology industries; and (iii) Jazwares, LLC, a global toy, entertainment, and musical instrument company. For additional information about Alleghany Capital Corporation, please visit www.alleghanycc.com.
About IPS-Integrated Project Services
IPS is a global leader in developing innovative business solutions for the biotechnology and pharmaceutical industries. Through operational expertise and industry-leading knowledge, skill and passion, IPS provides consulting, architecture, engineering, construction management, and compliance services that allow clients to create and manufacture life-impacting products around the world. Headquartered in Blue Bell, Pennsylvania in the United States, IPS is one of the fastest-growing companies servicing the life sciences industry with over 1,200 professionals in the United States, Canada, Brazil, the United Kingdom, Ireland, Switzerland, Singapore, China, and India. For more information about IPS, please visit www.ipsdb.com.
About The Cardinal Group
Cardinal was formed through an inspiration and vision to assemble and develop a team of passionate project management and building practitioners whose sole focus is to offer unparalleled services and solutions to the delivery of pharmaceutical and biotechnology construction projects. For more information about Cardinal, please visit www.cardinalgroupusa.com.
This release contains disclosures which are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can be identified by the use of words such as “may,” “will,” “expect,” “project,” “estimate,” “anticipate,” “plan,” “believe,” “potential,” “should,” “continue” or the negative versions of those words or other comparable words. These forward-looking statements are based upon Alleghany’s current plans or expectations and are subject to a number of uncertainties and risks that could significantly affect current plans, anticipated actions and Alleghany’s future financial condition and results. These statements are not guarantees of future performance, and Alleghany has no specific intention to update these statements. As a consequence, current plans, anticipated actions and future financial condition and results may differ from those expressed in any forward-looking statements made by Alleghany or on Alleghany’s behalf.