McNally International Inc., a third generation heavy construction company owned by the McNally and Hutton families, was acquired by Weeks Marine, Inc., a family-owned marine construction and dredging company based in New Jersey.
About the Company
As a leading tunnelling and marine construction contractor in North America, McNally has been awarded many high profile projects since its inception in 1949, including the Sheppard Subway and the new Spadina South Subway Extension Tunnels in Toronto, the Niagara Falls Hydroelectric Tunnel, the Port Mann Tunnel in Vancouver, the Raglan Mine Wharf in Deception Bay, Quebec, the remediation of the Sydney Tar Ponds in Nova Scotia, and the Euclid Creek Tunnel in Cleveland.
At the time Crosbie was retained, a number of key initiatives were underway at McNally including multigenerational succession planning, scaling the business for growth, and implementing a leadership change which saw the two principals step back from the business and the next generation of family members assume key leadership roles together with two long-term management minority shareholders. In addition, McNally was in the midst of securing a number of major contracts which required significant management resources. Given the Company’s success, the shareholders had high value expectations but also wanted to ensure that a partner would embrace McNally’s “values” as a family business.
Crosbie was retained to work with family members and management to help articulate the business strategy, and to finalize the financial forecasts and management structure. This upfront work was critical in highlighting the value proposition that McNally offered. In addition Crosbie managed the confidential sale process, provided advice on all aspects of the transaction, and led negotiations on behalf of the Company and its shareholders.