Granite Construction Inc. has acquired LiquiForce, a privately-owned company which serves public and private sector water and wastewater customers in both Canada and the United States.
LiquiForce provides a variety of underground contracting services including lateral liner rehabilitation, mainline Cured-in-Place Pipe (CIPP), project management, manhole rehabilitation and mainline point repairs. In addition, they are recognized as a leader for their patented LiquiForce Junction Lateral Liner.
Through the acquisition, Granite Construction added more than 100 employees to its team. Going forward, LiquiForce will continue to operate from offices in Kingsville, Ontario, Canada; Hamilton, Ontario, Canada; and Romulus, Mich. The transaction is expected to be immediately accretive to Granite’s 2018 earnings per share.
“This acquisition represents the next chapter in Granite’s strategic plan, as we continue to diversify and grow our business,” said James H. Roberts, president and chief executive officer of Granite. “This move positions Granite to build on our capabilities as a national leader in CIPP lining technology and trenchless pipe rehabilitation.
“The addition of LiquiForce also is in alignment with our recent announcement to acquire Layne Christensen,” he said. “As we consolidate and grow our position in the attractive water and wastewater sector, Granite has significant opportunities to capture a larger share of the market and accelerate our growth prospects. These strategic transactions represent a combination of complementary organizations which create a platform for growth, delivering meaningful benefits for shareholders, employees and customers. We expect value creation for shareholders in both the near- and long-term, including earnings accretion and synergy realization.
“This deal highlights some of the exciting opportunities for profitable growth ahead for Granite,” Roberts concluded. “We are proud to add a deep bench of trenchless and CIPP industry veterans who have developed industry leading technology. Combined with our existing Kenny Underground business, the LiquiForce addition provides a highly complementary set of trenchless rehabilitation solutions and expertise to Granite’s existing portfolio, allowing us to better serve clients.”