Vancouver-based Northwest Pipe Company announced Monday that it has acquired fellow pipe manufacturer Geneva Pipe Co. Inc. in a $49.4 million transaction. The transaction closed Jan. 31, Northwest Pipe said in a press release, and was funded with a mix of cash and debt.
It’s the largest acquisition to date for Northwest Pipe, according to chief financial officer Robin Gantt. The company’s last headline-pushing acquisition came in mid-2018 when it bought California-based Ameron Water Transmission Group.
Northwest Pipe specializes in manufacturing spiral-welded steel pipelines for water transmission systems, but in recent years it has also branched out into other types of pipe material, such as precast concrete. The Geneva acquisition gives Northwest Pipe a significant boost in that latter category — Geneva specializes reinforced concrete piping and other precast concrete products including storm drains, manholes and catch basins.
“The acquisition of Geneva, which we expect to be immediately accretive to our financial results, is a significant step in the continuous growth of our Company in serving a wider spectrum of the water infrastructure market,” Northwest Pipe CEO Scott Montross said in a statement. “By expanding into stormwater and wastewater manufacturing, we are strategically growing our firm. This transaction creates a stronger company while expanding our product offering to meet the robust demand created by our country’s aging infrastructure.”
Geneva is based in Utah and operates three manufacturing facilities in Salt Lake City, Orem and St. George. The company was previously privately held and has about 140 employees, with a reported revenue of approximately $43 million last year.
Northwest Pipe employs about 1,200 people across 10 plants nationwide. The Geneva acquisition comes at a time when Northwest Pipe has been experiencing a series of consistently positive financial results buoyed by a record-breaking backlog of project orders, which Montross previously attributed to a growing demand for updates to America’s aging water infrastructure.
“This is probably the strongest and best bidding environment that we’ve seen in many years,” he told investors during a conference call last year.