TZL 1523 (web)

TRANSACTIONS CHA CONSULTING ANNOUNCES SALE FROM FIRST RESERVE TO H.I.G. CAPITAL CHA Consulting, Inc., an innovative, full- service engineering, design, consulting, and program management firm, announced that it has been acquired by H.I.G. Capital, a leading global alternative investment firm with $60 billion of capital under management, from First Reserve. Financial terms of the transaction were not disclosed. CHA provides a wide range of technology- enabled design, engineering, project management, and consulting services to public, private, and institutional clients spanning numerous end markets, including government, manufacturing, transportation, utility, water resources, commercial, and education. The transaction, which closed on January 19, 2024, will enable the company to further capitalize on opportunities to accelerate growth and deliver industry-leading solutions. In 2018, the company partnered with First Reserve, a leading global private equity investment firm. Since then, CHA has successfully executed its growth strategy, including more than doubling its employee base and revenues, while simultaneously growing earnings. During this period, CHA successfully acquired nine firms to significantly expand its geographic footprint in the Southeastern U.S., and scaled its transportation, water, program management, and advanced manufacturing services offerings. Going forward, CHA Consulting & Holdings

President and CEO Jim Stephenson and the existing executive management team will continue to lead the company’s next phase of growth. “This new partnership with H.I.G. begins an exciting next chapter in the evolution of CHA’s platform and validates the success we have achieved over the last five years alongside the First Reserve team,” said Stephenson. “H.I.G. brings tremendous financial and operational resources with a great track record supporting companies and delivering value. We are confident this partnership will further position CHA for substantial growth and will provide opportunities to better support our clients and the markets we serve.” Matt Hankins, managing director at H.I.G. Capital, stated, “We look forward to working closely with the CHA team to invest in its team and expand on its industry-leading capabilities, while supporting the team’s growth strategy and selectively broadening its operational scope across North America, both organically and through continued acquisitions.” Jeff Quake, managing director at First Reserve, stated, “We’ve had a very successful partnership with CHA since 2018, and we’re proud of the work we’ve done together to build an industry- leading company that prioritizes an employee-first culture with an unwavering focus on client success. CHA is well-positioned to accelerate its

growth strategy and continue leading within the evolving AEC sector, and we wish Jim and the entire team well as they look to build on CHA’s momentum in this exciting new chapter.” Houlihan Lokey, Inc. served as lead financial advisor with support from AEC Advisors, and Simpson Thatcher & Bartlett LLP served as legal counsel for CHA. Harris Williams LLC served as financial advisor and Ropes & Gray LLP served as legal counsel to H.I.G. CHA Consulting, Inc. is an innovative, full- service engineering, design, consulting, and program management firm providing a wide range of technology- enhanced services to public, private, and institutional clients. We are focused on delivering sustainable, integrated solutions to the world’s most challenging infrastructure projects across utilities, transportation, water, and other critical commercial and industrial end-markets. CHA was ranked 69th largest engineering firm in the U.S. in 2023 by ENR, with approximately 1,800 employees and 50 offices throughout the U.S. and Canada. H.I.G. Capital is a leading global alternative investment firm with $60 billion of capital under management. Based in Miami, H.I.G. specializes in providing both debt and equity capital to middle market companies, utilizing a flexible and operationally focused/value-added approach. Since its founding in 1993, H.I.G. has invested in and managed more than 400 companies worldwide.

So what are you going to do in your AEC firm to combat the threat of new technology? You have a plan and are taking action, right? Mark Zweig is Zweig Group’s chairman and founder. Contact him at mzweig@zweiggroup.com . “We need to focus on finding and developing people with business, social, and communication skills ... These kinds of capabilities are going to be more important than ever. Companies that can assemble the best teams of people will thrive.”

MARK ZWEIG, from page 5

deterioration of everything. We have pollution, weather events, resource scarcity, and so many more issues and problems that AI can hopefully help us with, but not replace us. What all of this tells me is that as individual firm owners and managers, we need to focus on finding and developing people with business, social, and communication skills. When you start out with a shortage of people who have the requisite technical and design skills, and then only a fraction of those people have the interpersonal and “soft” skills you need, it won’t be easy. These kinds of capabilities are going to be more important than ever. Companies that can assemble the best teams of people will thrive. Those that don’t will inevitably decline.

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THE ZWEIG LETTER FEBRUARY 5, 2024, ISSUE 1523

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