Bowman Consulting Group Ltd. (the “Company” or “Bowman”), a national engineering services firm delivering infrastructure design solutions to customers who own, develop, and maintain the built environment, announced the acquisition of Element Engineering LLC (“Element”), a civil, water and wastewater engineering services firm based in Lakewood, Colorado.
Element serves rural communities and specialty districts throughout the Rocky Mountain West and Midwest. The firm delivers a comprehensive suite of professional, innovative, and cost-effective engineering solutions to its clients. Working with primarily municipal clients, Element strives to meet each client’s unique assignment and specification.
“Element adds additional depth to our growing national water-wastewater practice and extends our presence throughout Colorado,” said Gary Bowman, chairman and CEO of Bowman. “Nick and his team have built a thriving business by focusing on the details of building relationships and delivering unrivaled client service. Their proximity to our Denver operations provides an attractive opportunity to leverage each other’s relationships and resources. I am confident this will be a successful combination of cultures, customers and opportunities.”
“We started Element to deliver civil, water and wastewater engineering to smaller water authorities and municipal customers who weren’t being served by larger firms,” said Nicholaus Marcotte, founder and president of Element. “With Bowman, we will be able to continue our commitment to underserved customers but with a bigger set of resources and a deeper suite of services. We will also be exposed to a broader assortment of local and non-local projects which is an exciting prospect for everyone at Element. We’re pleased to be moving into this next phase of our company’s growth and evolution.”
Financed with a combination of cash, seller notes, and equity, the acquisition falls within previously discussed target multiples and operating metric ranges. The Company anticipates the acquisition will initially contribute at an annualized net service billing run rate of approximately $4.0 million and be immediately accretive. More detailed information on M&A activities, pipeline, and guidance updates are provided in connection with scheduled quarterly and annual communications.
