Reynolds Construction execs buy construction-services company
Three familiar faces at the Reynolds family of construction-service companies are assuming ownership under a new Harrisburg holding corporation that will unite four of the five separate firms.
Reynolds CEO David Angle, COO Jeff Merritt and CFO Anthony Worrall announced today they are starting Reynolds Enterprises, which will bring together Reynolds Construction Management, Reynolds Consulting Engineers, Reynolds Energy Services and Reynolds Restoration.
Company founder Richard Reynolds, who started the construction management firm in 1994, has no ownership stake in the new company. He will retain R.T. Reynolds, a general construction company.
"This is a natural transition for Reynolds," said Angle, who has been with the company since it was founded.
Last year, Reynolds promoted Angle to CEO and Merritt to COO as part of a succession plan centered around keeping the companies in-house. All three have been involved in the day-to-day operations as part of the leadership team for several years.
Angle had served as COO, president of the general construction division and project executive. Merritt previously held the positions of director of business development and senior vice president. Worrall has served as president of the restoration business since 1999.
Reynolds Enterprises will retain all of its employees, which total 103. There are no plans to downsize or make any personnel changes, the new owners said.
If anything, the plan is to grow. During the last year, the company has added 10 employees. The goal is to grow at a similar pace moving forward, Angle said: "There is still room to grow."
Over the last two years, Reynolds has opened an engineering office in Maryland and expanded its restoration services to a construction management office in King of Prussia.
The holding company will continue to focus on the company's core markets and geographic footprint, while exploring opportunities as the construction industry recovers, officials said.
"It's a branding opportunity," Merritt said.
Each of the companies evolved as a specialized service. Today the pieces fit together so well that it doesn't make sense to keep them separate, the ownership group said. The unification will allow the company to better promote all of its service areas.
"It's unusual not to have (a holding company)," Worrall said of the industry.
The Reynolds companies have managed or are currently involved in more than 200 projects valued in excess of $2.5 billion. As public sector funds have shrunk in recent years, especially on the education side, Reynolds has seen a strong market for energy services.
Working with school districts on energy conservation projects, Worrall said, is helping to ease general fund expenses, which can limit tax increases and bond issues.
Terms of the private sale, which should be completed by Jan. 1, are not being disclosed.
"We are moving into the next generation," Worrall said. "We are here to stay in Harrisburg for the long haul."