Calder Capital is proud to announce the successful acquisition of Johnston Contracting, Inc. (JCI) of Midland, Michigan by Lee Industrial Contracting of Pontiac, Michigan.
Established in 1955, Johnston Contracting is a heavy civil contractor serving the Tri-Cities Region of Michigan. Johnston provides excavating, grading, and underground construction services. Lee Johnston, the second-generation owner, looking to secure a partner for the future engaged Calder Capital.
Lee Industrial Contracting, based in Pontiac, Michigan, with locations in Grand Rapids and now Midland, employs nearly 600 team members. Lee Contracting offers a variety of in-house services, including electrical, rigging, foundations, pipefitting/mechanical, maintenance and repair, and more. By joining forces with JCI, Lee Contracting is able to extend its service offerings and expand its reach into Mid-Michigan.
“As Lee Contracting expands its presence throughout the state, adding the services offered by JCI to our portfolio was a natural fit for us,” said Frederick Cauley, President and CEO of Lee Industrial Contracting. He continued, “Johnston Contracting’s unparalleled expertise, legacy, and commitment to excellence align perfectly with our vision, and we look forward to integrating their experienced team into our operations and continuing the tradition of excellence for which Johnston Contracting is known.”
“On behalf of myself and the entire JCI staff, it is an honor to join forces with Lee Industrial Contracting,” said Lee Johnston, son of JCI’s founder. He continued, “Sharing a common philosophy of ethics and quality makes this acquisition worry-free. It’s a wonderful feeling to know that our company will continue to prosper into the next century.”
Sam Scharich of Calder Capital served as the Lead Mergers and Acquisitions Advisor to Johnston Contracting.
Calder Capital ran a robust and well-coordinated process; 95 qualified buyers reviewed the CIM and 9 offers were submitted.
”Lee Johnston was a spectacular seller to work with – easy-going, patient, but firm on what he wanted,” Sam commented. “Johnston Contracting is in very capable hands with Lee Industrial Contracting. JCI employees will be well taken care of and will benefit from Lee Contracting’s ESOP ownership benefits. Meanwhile, Lee Contracting has diversified into a new service and end-market- an end-market that they can cross-sell their existing services into as well. I am very excited for both parties and can’t wait to see what the future holds!”
“I found Sam and Calder Capital to be truly professional throughout this transaction,” said Neil Dabrowski, Director of Strategy, Lee Industrial Contracting. He continued, “Sam’s dedication to fostering a mutually beneficial partnership, as opposed to merely closing a deal, was evident throughout the process. I look forward to our next collaboration.”
“Congratulations to Lee Johnston, as well as Lee Contracting, on this successful combination of two construction powerhouses!” noted Calder Managing Partner, Max Friar. “Calder continues to invest in its construction company expertise pillar and the successful acquisition of Johnston Contracting demonstrates that despite jitters in the economy, Calder will prevail.”
Calder Capital, LLC served as the exclusive Mergers and Acquisitions Advisor to Johnston Contracting, Inc.
The terms of the transaction were not disclosed.
About Johnston Contracting, Inc.
Johnston Contracting was founded in 1955 by Dean Johnston. Dean’s son, Lee Johnston, took over Company ownership in 1987. The Company completes excavation work, water lines, sewer lines, chemical sewer lines, site development and restoration, pile driving, snow removal, and utility repairs for large industry-leading industrial companies.
About Lee Industrial Contracting
Established in 1989, Lee Contracting, headquartered in Pontiac, Michigan, and with additional locations in Grand Rapids and Midland, is a leading single-source industrial contractor renowned for delivering comprehensive, end-to-end solutions. The team of nearly 600 highly skilled tradespeople, supported by cutting-edge equipment and a fully equipped shop, ensures seamless and efficient operations at job sites nationwide. Lee Contracting excels in a wide range of capabilities, including foundations, rigging, electrical, mechanical, fabrication, maintenance & repair, controls & robotics, industrial storage solutions, and more. For more information, please visit our website at www.leecontracting.com.
About Calder Capital, LLC
Founded in 2013, Calder Capital, LLC is a lower middle market investment bank providing mergers and acquisitions advisory services to business owners, entrepreneurs, family offices, and investors across the United States. Our dedicated team of professionals combines extensive industry experience, technological innovation, negotiation savvy, and key relationships to exhibit exceptional execution. Calder’s services include mergers and acquisitions advisory, private funds and capital markets advisory, and business valuations.
