Newport Construction

Situation

Nearly a decade into operations, Newport began to vertically integrate. In 2009, the Company purchased 177 acres of land in Westford, MA, and Chelmsford, MA, to pursue materials manufacturing and secure an asphalt manufacturing permit. In 2017, Newport purchased a granite quarry abutting the Westford, MA, asphalt manufacturing site, creating two new businesses: Newport Aggregates and Newport Bituminous Products. The strength of Newport’s materials entities improved overall business performance and created significant synergies up and down the Company. Focused on the Company’s future, its founder, Richard A. DeFelice, prioritized a partner who would be a strong cultural fit and build on the Company’s sterling reputation and expanding strategic growth opportunities.

Engagement

Newport engaged G2 Capital Advisors, LLC (“G2”) as the exclusive sell-side advisor to run a highly tailored, strategic, and competitive process focused on identifying the right strategic partner to propel this well-positioned business forward. G2 works as a trusted advisor and long-term strategic partner in growing our clients’ businesses. We bring industry-specific experience and a breadth of relationships to every engagement.

Outcome

Newport was purchased by a global leader in construction and energy (the “Buyer”) in May 2024. Headquartered in Paris France, the Buyer operates in over 120 countries in the building, civil engineering, hydraulic engineering, and services sectors. The Newport acquisition accelerates the Buyer’s strategy of growing in the Northeast US and provides access to a strong set of operators with a unique geographical footprint. The acquisition furthers the Buyer’s vertical integration strategy, bolstering its public works operations in the Northeast, which it has grown since acquiring local operations in 2018.

Richard A. DeFelice, Newport founding President and CEO, who will continue to play a key executive role in the Company upon the close of the transaction, said of the sale, “I take great pride in Newport’s history and the sacrifice and perseverance it took to get to this point. I look forward to Newport’s next chapter with our new partner and our continued success together.”

“Newport engaged G2 early in their thoughtful and deliberate exploration of advisory options. G2 facilitated a series of focused and strategic discussions with prospective partners, enabling our client to evaluate all dynamics and make a well-informed decision, culminating in the selection of their preferred partner. We are delighted to have supported our client in achieving their long-term goal and look forward to seeing their continued success.” said Victoria Arrigoni, Managing Director, Head of Industrials & Manufacturing at G2 Capital Advisors.