Transaction overview
On August 22, 2022, Anser Advisory (US) completed its acquisition of LaFata Contract Services (LCS) (US), a leading provider of utility project and construction management services in the United States. The deal is valued at approximately $250 million, according to sources involved in the transaction. LCS was previously owned by IMB Partners, a private equity firm that has exited its investment as part of this merger.
Deal structure and financing
The transaction was structured as an all-cash acquisition with no disclosed debt component. D.A. Davidson served as exclusive financial advisor to LaFata Contract Services (LCS) in the deal. The terms of the agreement did not disclose any equity or debt split, lock-up provisions for LCS shareholders, or IPO optionality. However, IMB Partners' exit from its investment indicates that the private equity firm received a financial return on its stake in LCS. Dechert served as legal advisor to Anser Advisory during the transaction.
Strategic context
Anser Advisory's acquisition of LCS is aimed at creating a leading national utility services capability and enhancing its presence in key regional markets. With the addition of LCS, Anser Advisory has expanded its portfolio to include comprehensive energy and utility project management services, which complements its existing program management expertise. This strategic move positions Anser Advisory as a major player in the growing market for grid modernization, resiliency, and clean energy transition projects.
The rationale behind this acquisition is twofold: first, it strengthens Anser Advisory's service offerings to include a full suite of utility project management services; second, it extends the firm’s geographical reach, particularly in states such as Pennsylvania, New Jersey, Ohio, Virginia, Maryland, and Illinois. LCS brings with it significant experience managing large-scale projects for utilities across these regions, thereby enhancing Anser Advisory's ability to serve existing clients more effectively.
Regulatory path
To date, there is no publicly available information on regulatory scrutiny or approvals required for this merger. Given the deal value of approximately $250 million and the involvement of private equity firms in the transaction, it is likely that U.S. regulators such as the Federal Trade Commission (FTC) or Department of Justice (DOJ) Antitrust Division reviewed the acquisition under Hart-Scott-Rodino Act requirements. However, no details have been released about any specific regulatory hurdles or remedies imposed on the parties involved in this transaction.
The jurisdictions most likely to be involved include those where Anser Advisory and LCS operate, such as Pennsylvania, New Jersey, Illinois, Maryland, Delaware, Washington D.C., and other states across the Northeast and Midwest regions of the United States. Given the nature of utility services, which often involve significant regulatory oversight at both federal and state levels, it is possible that additional regulatory scrutiny was conducted beyond antitrust review.