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Magnum Tunneling Acquires BorTunCo
Magnum Tunneling LLC, a portfolio company of Momentum Capital Partners, announced has acquired all of the assets of the Boring and Tunneling Company of America Inc. bases in Houston, TX. Magnum and Bortunco Inc. provide primarily subcontract services on trenchless heavy underground construction projects using horizontal boring and tunneling as well as directional drilling. Terms of the investment were not released.
“The strategic benefit of combining these two industry-leading companies is very exciting,” commented Momentum Partner Jon Vanderploeg. “We believe that the combination, which will work very much like a merger, strengthens everything about these companies from market position to management strength.”
Concurrent with the acquisition, Magnum announced that it will change its name and will operate under the name Boring and Tunneling Company of America LLC, and the assumed name of Bortunco.
According to company General Manager Patrick Mann, “The Bortunco name is an industry icon. The company was formed over 50 years ago and has been known for all of that time as an industry leader and innovator. We all look forward to carrying on that tradition.”
Dale Kornegay, president and majority shareholder of Bortunco, agreed, stating, “The Magnum/Bortunco combination will be a formidable competitor in the trenchless construction industry throughout Texas and across the Gulf region. I really look forward to working with Pat Mann and Momentum Capital to further enhance not just the size, but the quality of our company.”
Momentum was formed in late 2004. The principals of the firm have extensive experience financing and operating small to mid-sized privately owned companies in various industries including broadcasting, manufacturing, business services and specialty finance. The firm is in the business of owning large minority and controlling equity positions in privately-owned companies. Capital is deployed for a variety of growth, acquisition, recapitalization and ownership transfer purposes with high quality owners and managers of small to mid-sized businesses throughout the country. Most often, Momentum’s structured investments range between $3 million and $8 million in size. magnumtunneling.com