PITTSBURGH — Michael Baker Corporation acquired RBF Consulting (RBF), a 540-person engineering, planning, surveying, and environmental services firm based in Irvine, Calif. RBF significantly expands Baker’s presence in the Western U.S. transportation, civil, and environmental infrastructure markets and, through its water resources experience and expertise, provides a platform for Baker to build a national water and wastewater practice. The terms of the transaction were a total consideration of $50 million, of which approximately $45.7 million was paid in cash and approximately $4.3 million was paid in Baker common stock.
Founded in 1944, RBF Consulting (www.rbf.com) has 17 offices in California, Nevada, and Arizona. The company provides comprehensive planning, design, and construction services for its clients including public and governmental agencies, the development community, private enterprise, non-profit agencies, and colleague firms. Its revenue in 2010 was approximately $103 million. The combination of Baker’s and RBF’s services creates a truly national engineering consulting and professional services firm and expands the ability of both companies to compete for and execute larger and more complex infrastructure projects on an international scale. Also, a combined Baker and RBF places emphasis on and strongly supports both firms’ internal and external sustainability initiatives.
In making the announcement, Baker’s President and CEO 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 concluded 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-CEO 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’s Co-CEO 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."