From the ashes, “PHOENIX” brings new life to our nation’s underground utility infrastructure. The Company provides inspections, maintenance and trenchless rehabilitation to water and sewer systems across the Southeast. Local municipalities benefit from PHOENIX’s domain expertise and quality, on-time work.
The Company benefits from the growing water and sewer rehab market as our aging infrastructure exceeds its useful life in many locales. Since inception, PHOENIX installed over 1.5M linear feet of lined pipe and meets experiential requisites necessary to perform large, complex jobs. PHOENIX is a prime contractor to local government agencies and equipped to self-perform most of their work.
This year, PHOENIX projects $6M in revenue and $1.5M of EBITDA with a healthy backlog for 2019. The Company is led by a strong President and supported by a team of project managers and skilled laborers. New ownership will experience growth by adding crews and expanding service offerings in complementary areas.
An inactive/retired senior shareholder desires a liquidity event in the near term. The younger president/shareholder runs the day-to-day and will remain post-close. An ideal buyer brings relevant municipal contracting experience and/or a background in utility services to support continued growth.
The Company leases ±8,000 s.f. of office & warehouse space on 1.2 acres from a separate entity owned by the Shareholder. The home office houses three employees and standby equipment which can be relocated or absorbed by a strategic acquirer. Most of the rolling stock is secured on-site at customer job sites. The team is comfortable working remotely given their coverage area and nomadic nature of work. The Seller is open to either a sale or lease of the real estate as needed.
Market Outlook / Competition
Water and sewer rehab is a $13B market expected to grow to $15B by 2022. Growth is driven by the demand to modernize the US’ aging infrastructure per EPA mandates. Congress recently passed a water infrastructure bill that injects an additional $6B of federal stimulus to expedite water & sewer distribution networks. Competition is fragmented on a regional basis, however; a handful of national players compete in most markets where larger contracts are bid. PHOENIX is positioned to compete against both large and small firms and drives value through execution and customer satisfaction.