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Hennessy & Simmons LLC (“CHS”) announced
today that it intends to increase its focus on investment
opportunities in companies that manufacture or distribute
products with applications in infrastructure-related industries
and companies that provide business services to customers
in these industries. Infrastructure end-use markets currently
served by CHS portfolio investments include: highway and
bridge construction and demolition; residential construction
site development and preparation; remediation and facilities
management; and water and solid waste impoundment and containment.
This origination initiative results from the firm’s
focused research on the infrastructure sector. CHS’ analysis
of non-residential construction spending suggests strong
demand for infrastructure-related products and services for
the next several years. In the private sector, a cyclical
upturn is fueling growth in construction spending. Historically,
cyclical upturns have resulted in 5-7% growth annually for
a period of eight to nine years. In the public sector, the
need to upgrade the nation’s aging infrastructure,
coupled with the recently-passed $286 billion highway bill
(“SAFETEA-LU”), are providing strong, consistent
growth.
The firm’s portfolio of infrastructure-related investments
validates CHS’ track record as a valuable partner to
management teams looking to grow their infrastructure-related
companies. Current infrastructure-related investments include:
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American Asphalt & Grading
Company
www.aaandg.com
Leading
provider of integrated construction services to the
Southern Nevada residential home building market |
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American Reprographics Company
www.e-arc.com
Leading
reprographics company in the United States providing
business-to-business document management services to
the architectural, engineering and construction industries |
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Gundle/SLT Environmental
www.gseworld.com
Leading
designer and manufacturer of geosynthetic lining solutions
used in the containment and management of solids, liquids
and gasses |
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LVI Services Inc.
www.lviservices.com
Nation’s
largest and fastest growing remediation and facilities
management firm |
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Penhall International Corp.
www.penhall.com
Largest
U.S. provider of concrete cutting, breaking and excavation
and highway grinding services, with the first or second
market position in the majority of its served markets |
With the firm’s increased focus on
investments serving infrastructure end-markets, CHS formed
an Infrastructure Advisory Board and is pleased to announce
its initial members: Samir Badawi, President and CEO of Gundle/SLT
Environmental, Inc.; Richard Goodrich, former Chief Financial
Officer of Chicago Bridge and Iron Company N.V. and Director
of Gundle/SLT Environmental, Inc.; John Sawyer, President
and CEO of Penhall International Corp.; and Steve Brown, Dan
Hennessy and Brian Simmons, Partners of CHS.
CHS is a Chicago-based private equity firm
specializing in private equity investments and recapitalizations
of middle market companies in partnership with management.
The firm targets opportunities to make majority equity investments
in companies valued at $100 million to $500 million. CHS
has formed five private equity funds and currently manages
over $2.5 billion of capital. To contact CHS regarding this
initiative, please e-mail CHS at infrastructure@chsonline.com. |