EFCG Weekly Briefing: Week of June 27, 2022

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Week of June 27, 2022


Community Impact

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Tectonic Engineering Consultants, Geologists & Land Surveyors, D.P.C. (Tectonic), served as a patriot sponsor for the Hudson Valley Honor Flight (HVHF) organization’s 10th-anniversary gala this past weekend. HVHF flies WWII, Korean War, and Vietnam veterans to Washington DC for the day in which they are taken to each memorial to honor them and their fallen comrades. As part of the organization’s efforts, Jay Kimler, Assistant Chief Surveyor at Tectonic, has been a part of the organization since 2017 as a guardian and flight team leader. Kimler stated, “Being part of Honor Flight has changed my life in so many ways. Nothing gives me more joy than to witness firsthand the faces of these courageous men and women as they visit the memorials built in their honor and being celebrated by so many people throughout the day. As the veterans return home most of them say it was the best day of their lives. It’s a humbling experience and one that I treasure dearly.”

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Industry News & Updates

House Appropriators Call for FY23 Hikes in Many Construction

  • With the upcoming July 4th recess drawing near, the U.S. House of Representatives Appropriations Committee pushed through several bills to set FY23 spending levels for federal agencies, following the approval of $15 billion for military construction projects and a tripling of the General Services Administration's construction and acquisition account on June 23 and June 24, respectively.
  • Additionally, the House panel approved an $8.9 billion spending bill on June 28 for energy and water resources programs, including projects to build river locks and dams, bolster communities' defenses against hurricanes, dredge harbors, restore ecosystems, and replenish coastal beaches.
  • House appropriators will take up its bill funding Interior Department and Environmental Protection Agency (EPA) programs. Water infrastructure programs are expected to receive $5.2 billion in federal funding and $1.3 billion dedicated to the EPA's Superfund program.
  • On July 1, the A would dedicate $61.3 billion for the Federal Highway Administration, $18.7 billion for the Federal Aviation Administration, $17.5 billion for the Federal Transit Administration, $3.8 billion for the Federal Railroad Administration, and $1.2 billion for the National Highway Traffic Safety Administration.
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U.S. Supreme Court Limits EPA’s Power to Regulate Emissions from Power Plants
    • In a 6-3 decision on Thursday, the U.S. Supreme Court limited the Environmental Protection Agency’s(EPA) power to regulate emissions from power plants, arguing that the provisions of the Clean Air Act did not explicitly give the EPA broad authority to regulate carbon emissions.
    • The ruling interpreting the U.S. Clean Air Act will keep the Biden administration from imposing the type of wide-ranging emissions-cutting plan the EPA tried to put in place when Barack Obama was president and limits the agency’s available tools amid increasing evidence that climate change is causing rising sea levels and more extreme weather patterns.
    • The EPA still has options to regulate emissions, but, according to the Court, it does not have the power to limit emissions from power plants and force them to move away from fossil fuels to renewable energy.
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    M&A Updates

    June 21, 2022
    Align Capital Partners (ACP), an Ohio-based growth-oriented private equity firm, announced the recapitalization of Schneider Geospatial, LLC (Schneider Geospatial), an Indiana-based SaaS provider of public access land management software and recurring support services to state and local governments. After growing Schneider Engineering Corporation's GIS business organically and through several acquisitions, the Schneider family decided to spin out Schneider Geospatial as an independent business in 2018 while maintaining 100% ownership of the Company. Through this transaction, ACP will provide significant growth capital to Schneider Geospatial while preserving the Schneider family legacy through their continued ownership interest in the Company. The Company's 50+ person team helps power Schneider Geospatial's cloud-based software platform, enabling clients to manage over 500 million information requests from over 23 million users. The Company's core solution combines web-based GIS data reporting tools, including CAMA and tax, ownership history, liens, boundaries, environmental issues, and topography, into a single, user-friendly web application.
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      June 28, 2022
      Bureau Veritas, a France-based provider of laboratory testing, inspection, and certification services, has acquired Advanced Testing Laboratory (ATL), an Ohio-based provider of scientific sourcing services for the North American Consumer Healthcare Products, Cosmetics & Personal Care, and Medical Device markets. The acquisition of ATL will expand Bureau Veritas' operating footprint within North America and in the Consumer Products and Consumer Healthcare markets. Didier Michaud-Daniel, Chief Executive Officer of Bureau Veritas, commented, "Through its strong expertise in on-site scientific sourcing solutions and lab-based services, ATL will contribute to the expansion of BV's footprint in North America. This major step in our development enables us to enter the fast-growing Consumer Healthcare market."
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        June 29, 2022
        KCI Technologies Inc. (KCI), a Maryland-based multi-disciplined engineering firm environmental, transportation, telecommunications, construction, facilities, and land development services to government, institutional and private-sector clients, has acquired a majority stake in AmChel Communications Inc. (AmChel), a Texas-based telecommunications firm. The acquisition will allow KCI to leverage AmChel's expertise in turnkey cellular tower installation to expand its growing communications service offerings throughout Texas and beyond. KCI Vice President and Communications Infrastructure Discipline Manager, Arch P. Noha, stated, "This acquisition expands our growing footprint in Texas, but more importantly, enhances our ability to better meet the demands of our nation's communications infrastructure network."
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          June 29, 2022
          SLR Consulting (SLR), a United Kingdom-based environmental and sustainability consultancy firm, has acquired ClearLead Consulting (ClearLead), a United Kingdom-based carbon, energy, and sustainability consulting firm. The acquisition of ClearLead will strengthen SLR's service offerings in climate, net-zero, and strategic environmental consulting. ClearLead's approximately 50-person team advises commercial, industrial, and public sector clients on environmental solutions to reduce energy costs and carbon emissions; operate more sustainably; and comply with increasingly complex environmental regulations in the UK and internationally. The announcement comes barely a week after Ares Capital Management Corporation took a majority stake in SLR following the exit of Charterhouse Capital Partners.
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            June 30, 2022
            CONSOR Engineers, LLC (CONSOR), a Texas-based multi-discipline engineering firm offering planning and designing, structural assessments, construction, and other specialized services for the water resources and transportation sectors, has acquired Project Engineering Consultants (PEC), a Utah-based multidisciplinary engineering firm that's served government, municipal, and private clients. The acquisition of PEC will help to expand CONSOR's operating footprint in the Mountain West region of the United States and allow the firms to leverage each other's burgeoning thought-leadership and expertise in water engineering. As a collective in the Mountain West, the firms have offices in Utah, Nevada, Arizona, Colorado, and Idaho, allowing for a comprehensive and local service throughout the region.
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