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Boxwood to merge with Atlas
Posted on Wednesday, 14 August 2019 13:16
Blank check company Boxwood Merger has agreed to buy US-based Atlas Intermediate Holdings from private equity firm Bernhard Capital for an enterprise value of USD 709.50 million. Following the acquisition, the purchaser plans to change its name to Atlas Technical Consultants and its common stock will continue to be listed on the Nasdaq under the ticker symbol ATCX. Upon completion, Atlas will become a wholly-owned indirect subsidiary of Boxwood. The cash portion of the deal will be funded using cash in trust and debt financing and Bernhard and the target’s management team will continue to invest in the combined business. Both companies’ boards have approved the transaction, which is slated to complete in the fourth quarter of 2019, subject to stockholder clearance and other closing conditions. Headquartered in Texas, Atlas provides professional testing, inspection engineering and consultancy services to public and private clients spanning the transportation, commercial and industrial markets, among others. It has over 3,200 employees across 40 states and its brands include Consolidated Engineering Laboratories, Pavetex, ATC and Piedmont. After the deal has been closed, the merged company will be headed by Atlas’ chief executive Joe Boyer and chief financial officer Walter Powell. Boyer said: “This transaction directly aligns with our intention to enter the public markets as we look to realize the full growth potential of our purpose-built platform.” He noted the deal would allow the business to expand its market share and become the preferred provider of professional and technical services within its industry. Stephen Kadenacy, chairman of Boxwood, added: “We expect to deliver both organic and acquisitive growth while continuing the best-in-class cash flow performance that Atlas has achieved since its inception.” According to Zephyr, the M&A database published by Bureau van Dijk, there have been 674 deals targeting engineering services providers announced worldwide since the beginning of 2019. Capgemi, in the largest of these and the fourth-biggest transaction on record for this sector, agreed to buy France-based Altran Technologies for EUR 5.40 billion. Other companies to have been targeted in this industry this year include Zhejiang Construction Investment Group, Chiyoda and Endeavor Robotic Holdings. © Zephus Ltd