The acquisition is expands Baker’s presence in the Western US transportation, civil and environmental infrastructure markets. It is also intended to provide a platform for Baker to build a national water and wastewater practice.
The terms of the transaction were a total consideration of US$50m (£32.2m), of which approximately US$45.7m was paid in cash and approximately $4.3m was paid in Baker common stock.
RBF Consulting was founded in 1944 and has 17 offices in California, Nevada and Arizona. The company provides planning, design and construction services for clients including public and governmental agencies, the development community, private enterprise, non-profit agencies and other consultancies. Its revenue in 2010 was approximately US$103 million.
In making the announcement, Baker’s president and chief executive officer Brad Mallory said: “RBF is an outstanding company with a very talented team of professional and technical employees. Its prominence in the Western United States, and particularly in California, greatly expands Baker’s presence in that region of the country, which is a key objective of our growth strategy.” He added that RBF provides Baker with access to a new and diversified client base, including the private sector, which will help the Company meet its objective of a more balanced public/private business mix. He said that “following the acquisition, we continue to have a strong balance sheet, with no debt and approximately $50 million of cash and marketable securities. We firmly believe that the RBF acquisition represents an excellent strategic investment that will build long-term, sustainable value for all of our shareholders.”
RBF co-chief executive officer Bob Kallenbaugh said, “Our decision to join with Baker is clearly the most strategic and monumental decision we have made in our 67-year history. We will be able to bring increased and expanded services to the clients we serve, and provide extended opportunities for our people as the top experts in their respective fields.”
RBF co-chief executive officer Jim McDonald, said, “Baker and RBF have historically shared harmonious business philosophies and core values of excellence in client service, high quality projects and leadership in their fields of expertise, as well as a mission to create innovative and sustainable solutions for infrastructure and the environment. We are excited about our future as a company of Michael Baker Corporation.”