Bowman Acquires Utility Services and Sustainability Solutions Firm FCS Group
Bowman Consulting Group Ltd. (the "Company" or "Bowman") (NASDAQ:BWMN), a national engineering services firm delivering infrastructure design solutions to customers who own, develop, and maintain the built environment, today announced the acquisition of Redmond, Washington based FCS Group ("FCS"). FCS is a professional services firm focused on addressing the financial, management and economic challenges facing public sector entities including utilities, state and local governments, regional agencies and public safety organizations. Led by current President and Principal John Ghilarducci, FCS specializes in utility rate and fee advisory services along with utility management, financial and economic planning and infrastructure funding consulting.
FCS consults for a variety of clients, including government agencies in urban and suburban areas, rural utility systems, municipal authorities in regions with seasonal or climate sensitivities and communities with special commercial and industrial needs. Given the firm's particular expertise and experience in utility rate policy and practice, FCS client assignments often range from defining revenue requirements and building comprehensive financial assessment tools to developing long-term capital funding strategies and full cost-of-service rate analyses in support of infrastructure investment and programmatic initiatives for a variety of water-related, energy, solid waste and other services. With a staff of 35 technical, management and financial professionals throughout the western United States, including Washington, Oregon and Colorado, FCS has delivered high-quality, cost-effective consulting services in over 4,000 engagements to more than 650 public and quasi-public clients since its founding in 1988.
"FCS immediately expands our reach and our resume within the utility, government and sustainability markets," said Gary Bowman, chairman and CEO of Bowman. "This acquisition, while not a typical engineering firm, presents a unique opportunity both to accelerate our penetration of the utility and renewables markets and to expand the breadth of services we can offer our existing portfolio of traditional utility and energy transition clients. FCS also brings to Bowman a substantial history of successful public sector engagements. I am confident that the combination of our combined utility services experiences and long-standing client relationships will deliver meaningful revenue synergies as we integrate our organizations. I am excited to have John and the entire FCS team become part of Bowman."
"FCS has a proud history and unparalleled reputation within the utility and public sector markets of the northwest," said John Ghilarducci, president of FCS. "As part of Bowman, we will be able to expand our reach beyond our established markets and secure new client engagements. I am confident that many of our existing clients will now welcome the opportunity to expand their relationships with us to consider Bowman's unique offerings. Likewise, I am confident we can grow Bowman's existing utility portfolio."
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 $7.0 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.
About FCS Group
FCS Group, established in 1988, provides solutions to effectively address financial, management and economic challenges faced by public sector clients. The FCS management team includes professionals with backgrounds in public administration, management, finance, accounting, economics and engineering disciplines. These analytically focused perspectives equip the firm to address government finance, management, economic and operational challenges while maintaining fixed attention on organizational sensitivities, policy drivers and stakeholder priorities. FCS has delivered high-quality, cost-effective consulting services in over 4,000 engagements and served more than 650 clients with a staff of 35 professionals throughout the western United States from locations in Redmond, Washington, Lake Oswego, Oregon and Boulder, Colorado. For more information on FCS Group, their projects and their services, visit www.fcsgroup.com.
About Bowman Consulting Group Ltd.
Headquartered in Reston, Virginia, Bowman is a national engineering services firm delivering infrastructure solutions to customers who own, develop, and maintain the built environment. With over 2,200 employees and more than 90 offices throughout the United States, Bowman provides a variety of planning, engineering, geospatial, construction management, commissioning, environmental consulting, land procurement, and other technical services to customers operating in a diverse set of regulated end markets. Bowman trades on the Nasdaq under the symbol BWMN. For more information, visit bowman.com or investors.bowman.com.
Forward-Looking Statements
This press release may contain "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical fact, including statements regarding our future results of operations and financial position, business strategy and plans and objectives for future operations, are forward-looking statements and represent our views as of the date of this press release. The words "anticipate", "believe", "continue", "estimate", "expect", "intend", "may", "will", "goal" and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to several assumptions and risks and uncertainties, many of which involve factors or circumstances that are beyond our control that could affect our financial results. The Company cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by the forward-looking statements contained in this news release. Such factors include: (a) changes in demand from the local and state government and private clients that we serve; (b) general economic conditions, nationally and globally, and their effect on the market for our services; (c) competitive pressures and trends in our industry and our ability to successfully compete with our competitors; (d) changes in laws, regulations, or policies; and (e) the "Risk Factors" set forth in the Company's most recent SEC filings. Considering these risks, uncertainties and assumptions, the future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in any forward-looking statements. Except as required by law, we are under no obligation to update these forward-looking statements after the date of this press release, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.
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