NEW ORLEANS – Chaffe & Associates, Inc. (Chaffe), a Gulf South-based investment bank firm, announced that it served as the exclusive financial advisor ad investment banker to Dynamic Group, LLC (Dynamic), in its acquisition of Cycle Construction Company, LLC (Cycle). The transition was officially closed on March 31.
The transaction, Chaffe shares, enhances Dynamic’s capabilities by combining two prominent Gulf Coast businesses specializing in critical government infrastructure repair, construction and disaster response projects, further strengthening its already robust platform. It also differentiates the company within its industry, enabling it to execute a broader scope of self-perform work and pursue larger, more complex United States Army Corps of Engineers (USACE) contracts.
“This deal was bout more than just numbers; it was about finding the right cultural fit for two family-oriented, high-performance companies,” said Michael H. Schmidt, Chaffe’s head of investment banking and president of Chaffe Securities. “Seeing this transaction cross the finish line is a proud moment for our firm, as it ensures these two great teams can continue to grow and serve both our backyard and the many far reaches of the globe.”
“Having known the Kernion family for several years, we knew that they would be a perfect fit for our client,” said Whit Slocum, managing director at Chaffe. “It was a privilege to represent Dynamic in their first major acquisition to unite two well-respected organizations.”
Teh acquisition also marks an important milestone for Cycle, which was founded by Jonathan Kernion in 2000, to focus on heavy civil construction and complex infrastructure projects. Nathan and Kevin Kernion, the second generation of Kernions, have further built upon Cycle’s reputation and will continue in their current roles with Dynamic. By joining forces with Dynamic Group – a leader in infrastructure, construction and emergency response services – the combined entity is now positioned as one of the largest and most versatile firms of its kind in the South.
“This acquisition brings decades of heavy construction experience and capabilities to Dynamic’s broad base of services and clients,” said Josh McCoy, owner and chairman of Dynamic. “The Kernion family and the Cycle team have built a best-in-class operation, and we look forward to expanding the resources avaiable to Dynamic’s clients across the region.”
“This acquisition will provide additional resources for our time, give our clients a broader set of construction solutions and set the stage for future growth,” said Jonathan Kernion, chief executive officer of Cycle Construction. “The companies share a long-term approach and a strong commitment to the markets and communities we serve.”
Miller, Sullivan & DeMarcay, LLC, a New Orleans-based law firm, advised Cycle. Houston-based PorterHedges represented Dynamic in the transaction.