New Mountain Capital Expands Portfolio with Acquisition of Jensen Hughes

Introduction

The recent acquisition of Jensen Hughes by New Mountain Capital marks a significant milestone in the engineering and consulting landscape. This strategic move not only enhances New Mountain Capital's portfolio but also positions Jensen Hughes to capitalize on the increasing demand for safety and risk management solutions in various sectors.

Deal Summary

New Mountain Capital, an investment firm known for its growth-oriented approach, has signed a definitive agreement to acquire Jensen Hughes, a global leader in safety, security, and risk-based engineering. The agreement is set to close in the fourth quarter of 2020, contingent upon customary closing conditions.

Jensen Hughes boasts a workforce of over 3,000 professionals operating from more than 50 offices worldwide. The company offers a range of services, including fire protection engineering, security engineering, and risk assessment, catering to clients across architecture, engineering, construction, and government sectors. This acquisition is strategically significant as it aims to enhance Jensen Hughes' ability to meet complex safety and security challenges through its integrated service offerings.

Steven B. D. Schwartz, Managing Director at New Mountain Capital, expressed enthusiasm about the partnership, citing Jensen Hughes' exceptional reputation and the growth opportunities that lie ahead. He emphasized a shared commitment to delivering innovative solutions and value to clients.

Upon the transaction's closure, Dr. Hisham Mahmoud will take on the role of Chairman of the Board at Jensen Hughes. Dr. Mahmoud brings over 30 years of experience in engineering and consulting, having previously held CEO positions at several global engineering firms. His leadership is expected to steer Jensen Hughes towards achieving its strategic growth objectives in the evolving safety and security landscape.

Buyer Profile

New Mountain Capital is a growth-focused investment firm that manages a diverse range of capital, including private equity, private credit, and public equity. With a strategic emphasis on sectors such as healthcare, technology, and business services, the firm seeks to invest in companies that exhibit strong fundamentals and potential for growth.

In the past six months, New Mountain Capital has successfully completed several notable transactions, including:

• Acquisition of a leading healthcare services provider to enhance operational efficiencies and expand service offerings.
• Investment in a technology firm specializing in data analytics to capitalize on the growing demand for data-driven solutions.
• Purchase of a business services company aimed at optimizing client operations and driving profitability.

These transactions reflect New Mountain Capital's strategic focus on sectors with robust growth potential and align with its investment philosophy.

Conclusion

The acquisition of Jensen Hughes by New Mountain Capital signifies a pivotal shift in the engineering and consulting sectors, underscoring ongoing industry consolidation trends. For investors, this deal represents a promising opportunity to capitalize on the expanding market for safety and risk management solutions. The combined expertise and strategic direction provided by New Mountain Capital and Dr. Mahmoud are expected to drive significant growth for Jensen Hughes moving forward.