First Reserve and CHA management have completed the acquisition of engineering and construction consultancy CHA Consulting, Inc., valued at $290 million. The deal was announced on April 10, 2018, and closed on the same day.
| Acquirer | First Reserve & CHA management |
|---|---|
| Target | CHA Consulting, Inc. |
| Value ($M) | $290 |
| Type | Secondary buyout |
| Date (Announced/Closed) | April 10, 2018 / April 10, 2018 |
| Buy-side advisors | Long Point Capital, Houlihan Lokey |
| Sell-side advisor | Houlihan Lokey |
Deal Mechanics
The acquisition was led by Long Point Capital and involved the support of financial advisory firm Houlihan Lokey for both the buy- and sell-sides. Specific deal terms were not disclosed.
Strategic Rationale
First Reserve, a global private equity firm specializing in energy-related investments, aims to bolster CHA's growth trajectory and facilitate its expansion into new markets. The acquisition also positions CHA to enhance its service offerings and geographic reach within the engineering and construction sector.
Financial Context
The deal is part of First Reserve’s broader strategy to invest in mid-market businesses that can benefit from operational improvements and strategic investments to drive long-term growth. CHA, with a strong presence across multiple states, is well-positioned for such enhancements under the new ownership.
Advisors
Long Point Capital served as financial advisor to First Reserve, while Houlihan Lokey provided advisory services for both the buyer and seller in this transaction. Legal advisors were not disclosed by either party.
Outlook
The acquisition of CHA Consulting is anticipated to provide a significant platform for investment growth and expansion within the engineering and construction consultancy space, with an emphasis on leveraging First Reserve's network and resources to support CHA’s strategic objectives.