Morgan Stanley, trading on the New York Stock Exchange under the ticker MS, made a significant move in the infrastructure services sector by committing its middle-market private equity division, Morgan Stanley Capital Partners, to a majority ownership stake in Olsson, Inc. This engineering and design company is noted for its employee-owned culture and long-standing reputation since its establishment in 1956.
Olsson employs over 2,000 professionals and operates from 35 offices scattered across the United States. Its expertise spans crucial sectors including technology, transportation, water resources, power generation, and federal market projects. This diversified portfolio has positioned Olsson as a prominent player regionally and nationally in engineering services.
The transaction marks Morgan Stanley Capital Partners’ fourth platform acquisition within infrastructure services since 2021. It follows previous investments in firms such as Resource Innovations, Apex, and Alliance Technical Group. MSCP underscores that its sector knowledge will provide a solid foundation for scaling Olsson’s operations and accessing new markets.
Eric Kanter, head of industrial services at Morgan Stanley Capital Partners, emphasized that the partnership maintains Olsson’s distinctive employee-ownership culture. Kanter expressed commitment to aiding Olsson's planned growth, notably in targeted geographies and industries where MSCP’s infrastructure experience can be leveraged effectively.
From Olsson’s perspective, CEO Brad Strittmatter characterized the partnership as a genuine collaborative arrangement rather than a simple ownership change. He highlighted the company’s intention to retain its established name, brand identity, and leadership team. Strittmatter also noted that the deal allows for ongoing investments in advanced technologies and the enhancement of expertise levels within the firm.
Olsson employees are making a significant reinvestment as part of this arrangement, indicating their confidence and alignment with the company’s strategic trajectory. This reinvestment plays a key role in aligning interests between Morgan Stanley Capital Partners and the existing workforce.
The legal aspects of the transaction saw Olsson represented by the law firm Koley Jessen, while The Environmental Financial Consulting Group acted as Olsson’s exclusive financial advisor. These teams have facilitated the intricate process to bring the deal to fruition.
Market reaction at the time of the announcement saw Morgan Stanley shares decline by 1.81%, trading at $183.19. Despite the decline, the stock remains near its 52-week high peak of $188.82, reflective of substantial market interest in the firm’s activities.
Overall, the strategic partnership aims to blend Morgan Stanley Capital Partners’ infrastructure investment acumen with Olsson’s employee-centric corporate culture and multi-disciplinary engineering capabilities. Both parties appear positioned to capitalize on industry opportunities supported by enhanced operational scaling and market penetration efforts.