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Company Overview
Hempt Bros., Inc. (“Hempt,” or the “Company”) is a privately held family business headquartered in Camp Hill, PA near Harrisburg. Originally founded in 1925, Hempt has operated for nearly a century in the Pennsylvania capital area producing and selling roadway and pavement construction materials including stone, asphalt and concrete, and also directly performing heavy highway construction. The Company owns and/or operates three quarries, four blacktop plants and two concrete plants.
Situation
Over the course of a decade under the leadership of the family’s fourth generation, the Company undertook and completed several transformational projects to solidify Hempt’s long-term position as a regional leader in its industry. Projects included a major overhaul of critical production equipment in order to optimize its production efficiency, and also securing property and expanded mining permits to ensure the availability of material supply for decades to come. In addition, the Company was awarded and completed the largest highway construction contract in its history during this period. As no members of the family’s fourth generation demonstrated interest in succeeding existing management, the Company was left without an internal succession plan. As most of the Company’s shareholders, including existing management, approached or had reached retirement age, the Company’s board elected to seek liquidity and pursue a sale of the Company’s shares.
Solution
Griffin was engaged by Hempt as its exclusive investment banker to solicit offers to purchase the Company. Despite the pandemic and associated government shutdowns negatively impacting construction projects, Griffin managed a competitive sale process involving a select group of U.S. and international strategic buyers. Griffin’s process generated multiple proposals to purchase the Company, and ultimately resulted in Hempt being sold to New Enterprise Stone & Lime Co., Inc., a strategic competitor based in New Enterprise, PA.
For more information on this transaction, contact John A. Lee, Senior Managing Director, at 610.205.6106, or Thomas A. Hill, Senior Vice President, at 610.478.2034.
