The management of EGPI Firecreek Inc. earlier this year made a decision to transform the company entirely. The company was once an oil and gas company, but it is now embarking on an acquisition strategy centered on the vertical integration of enterprises serving the transportation construction and intelligent traffic systems market.
EGPI Firecreek announced today that it is in the final stages of its due diligence phase for the acquisition of SouthWest Signal Corporation, which should be completed within a few weeks. SouthWest Signal has been in business since 2000 and is engaged in all facets of the DOT (Dept. of Transportation) construction industry. Last year they reported over $14 million in annual revenues.
SouthWest Signal has expertise in signalization, lighting, signing and intelligent traffic systems. In addition, the company has also worked with large retailers around the country, such as Walmart, in addition to several large private developers as well as city, county and state funded DOT projects. More recently, the company announced an increased sales backlog of $11.4 million for 2009 and the signing of three new contacts, including a new maintenance with the city of Tampa, Florida.
This is just what EGPI Firecreek is looking for when they target companies for acquisition. EGPI’s second acquisition target – a Georgia-based electrical construction company, recently increased its total sales backlog to $12.2 million for 2009. This acquisition is slated to be completed in the first quarter of 2010.
Chairman and CEO of EGPI Firecreek, Dennis Alexander, commented on the deals, “Collectively, these two acquisitions represent an additional $30 million in revenues to EGPI Firecreek with a reported $23.6 million backlog in sales going into 2010. We cannot stress the importance of these two companies with their solid reputations.”