Orion Group Holdings Acquires J.E. McAmis for $60M to Boost Marine Construction

summarizeSummary

Orion Group Holdings acquired J.E. McAmis for approximately $60 million, enhancing its marine construction capabilities and market position, with the deal expected to be accretive to earnings.

check_boxKey Events

• Acquisition Completed

  Orion Group Holdings acquired J.E. McAmis, Inc. and JEM Marine Leasing, LLC, a heavy civil marine contractor, for approximately $60 million, net of cash acquired.

• Consideration Details

  The purchase consideration includes $46 million in cash (funded through borrowings), a $12 million unsecured subordinated 5-year promissory note bearing 6% interest, and $2 million in Orion common stock.

• Contingent Payments

  Additional contingent consideration includes $10 million based on profit from backlog projects, plus 40% of profit from select near-term pursuits.

• Strategic Benefits

  The acquisition is expected to strengthen Orion's marine construction capabilities, enhance its equipment fleet, expand its geographic reach, and is projected to be accretive to adjusted EBITDA and margin.

auto_awesomeAnalysis

Orion Group Holdings has completed a significant acquisition of J.E. McAmis, a heavy civil marine contractor, for approximately $60 million. This strategic move is expected to strengthen Orion's competitive position in jetty and breakwater construction, enhance its equipment fleet with Jones Act marine assets, and expand its geographic footprint. The company anticipates the acquisition will be accretive to its adjusted EBITDA and margin, signaling a positive outlook for future financial performance. The funding structure, combining cash, a promissory note, and a modest amount of stock, indicates a balanced approach to financing this growth initiative, especially as the stock trades near its 52-week high.