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Bowman to acquire Terra Associates to expand operations in Texas

Bowman to acquire Terra Associates to expand operations in Texas
Bowman to acquire Terra Associates to expand operations in Texas

Bowman has reportedly signed a definitive purchase agreement to acquire San Antonio and Houston-based Terra Associates, Inc. as part of its expansion plan in Texas. The deal is expected to close in the end of December 2021, subject to certain customary closing conditions.

Bowman CEO, Gary Bowman has commented on the deal, stating that the leadership team of Terra will be an ideal addition to the Bowman team, as they embark on their expansion of operations in Texas. According to Bowman, the acquisitions, which comes shortly after the firm’s acquisition of 1519 Surveying, is likely to strengthen the presence of Bowman in the state. He also added that Terra’s expertise in transportation design, utility district services and commercial site work complement Bowman’s service portfolio and align with its market demand evolution and growth strategies.

CEO of Terra, Vickie Henkel, also spoke about the acquisition, claiming that Bowman’s growth approach is an intriguing prospect for Terra. She added that growing more acquainted with the Bowman leadership over the course of the acquisition has made the transition an easier process.

The acquisition deal is to be funded through a combination of seller financing, stock and cash. According to Bowman, the acquisition of Terra is expected to make an initiate contribution of almost $5.5 million, in terms of annualized net service billing.

CFO of Bowman, Bruce Labovitz has stated that the firm is continuing its efforts to grow at a reasonable price. He commented that Terra would be the final acquisition for the company in 2021, bringing its annualized acquired revenue to nearly $36 million for the year. He also added that the deal is within the firm’s target multiple range and complies with all the objectives for operating performance metrics for the company.

For the uninitiated, Terra, headquartered in Texas, supplies engineering and civil design solutions to clients involved in water-wastewater solutions, office and industrial facilities, irrigation and landscape systems and traffic and transportation planning, among others.

Source Credit: https://bowman.com/news/bowman-expands-texas-operations-through-acquisition-of-houston-and-san-antonio-based-terra-associates-inc/

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Sunil Jha

Sunil Jha has been a part of the content industry for close to two years. Having previously worked as a voice over artist and sportswriter, he now focuses on writing articles for newsorigins.com, across a slew of topics, ranging from technology to trade and finance. With a business-oriented educational background, Sunil brings forth the expertise of deep-dive research and a strategic approach in his write ups.