Nuprecon, a Snoqualmie, Wash.-based demolition contractor owned by Evergreen Pacific Partners, has merged with fellow demolition contractor CRS Environmental, which is based in Brea, California. No financial terms were disclosed. Evergreen Pacific provided equity for the deal, while debt was provided by Banc of America Capital Solutions, Prudential Capital Group and Prudential Capital Partners. Houlihan Lokey provided advisory services.
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.
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 (www.eppcapital.com) 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.).