Orion (US:ORN) Yahoo Finance·2026-02-06 10:29Core Viewpoint - Orion Group has acquired J.E. McAmis and JEM Marine Leasing for $60 million, aiming to enhance its marine construction capabilities and capitalize on significant market opportunities in the marine sector [4][7]. Company Overview - McAmis has over five decades of experience in marine solutions, focusing on projects such as jetty and breakwater construction, dredging, and environmental restoration, primarily in Washington and Oregon [2]. - The majority of McAmis' work, estimated at over 80%, is with the U.S. Army Corps of Engineers [1]. Acquisition Details - The acquisition is Orion's first since 2017 and is part of its strategy to become a leading marine construction contractor [3]. - The total consideration for the acquisition is $60 million, comprising approximately $46 million in cash, a $12 million subordinated note, and $2 million in equity [7][20]. - The deal is expected to be accretive while maintaining leverage around one turn, focusing on revenue and capability growth rather than overhead cost synergies [5][13]. Financial Profile - McAmis has a historical revenue run-rate of approximately $38–40 million, with EBITDA margins consistently above 20% [6][10]. - At the time of closing, McAmis had a backlog of about $24 million, which is expected to represent 60% to 65% of its annual revenue [9]. Growth Opportunities - McAmis has an incremental opportunity pipeline exceeding $1.4 billion, primarily consisting of Pacific Northwest projects, with a typical project duration of two to three years [8]. - The acquisition adds specialized equipment and real estate valued at over $34 million, enhancing Orion's operational capabilities [5][16]. Integration and Future Outlook - Orion emphasizes cultural alignment and operational fit in the integration process, with McAmis leadership joining Orion's team [14]. - The company plans to provide consolidated guidance for 2026, including McAmis, in its upcoming financial report [17].