Lakeshore Engineering Services, Inc. Acquires TolTest, Inc. Creating a Global Leader in Federal Government and Municipal Contracting

Acquisition Combines Highly Complementary Businesses, Creates Jobs and Positions for Strong Global Growth

Apr 28, 2010, 13:47 ET from Lakeshore Engineering Services

DETROIT and MAUMEE, Ohio, April 28 /PRNewswire/ -- Lakeshore Engineering Services, Inc. announced today that it has acquired TolTest, Inc., creating one of the largest Midwest Federal Government and Municipal Contracting Companies, Lakeshore TolTest Corporation, with global presence. This Corporation will be lead by Mr. Avinash Rachmale, PE and as Chairman and CEO.

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TolTest, Inc., is a Top ENR Specialty Contractor, based in Maumee, Ohio. TolTest, Inc. brings over 80 years of history, deep knowledge and experience in the Federal contracting industry. Like Lakeshore, TolTest works in the public sector, performing work for the federal government, local governments and municipalities. TolTest, as a specialty contractor does work in traditional construction, environmental remediation and bulk fuel services with projects spanning across US, Pacific, Europe, Middle East, and Fareast.

Founded in 1994 and headquartered in Detroit, Michigan, Lakeshore is a full-service infrastructure construction services company that provides complete general construction and infrastructure management services to federal and municipal government agencies worldwide.

The acquisition of TolTest, Inc. represents a significant business move by merging two of the areas largest and most successful federal and municipal contracting firms. This will also set the stage for reduced costs and boost customer value to our federal and municipal Government clients.

Lakeshore TolTest Corporation will have its corporate offices headquartered in one of Detroit's Landmark Albert Kahn Buildings at Woodward and East Grand Boulevard, Detroit, Michigan, cementing Lakeshore's commitment to stay and grow in the City of Detroit. Lakeshore, with this acquisition, will have in excess of 650 employees, over 40 office locations in 12 countries worldwide, and revenues in excess of half a billion dollars.

Lakeshore is guided by Mr. Rachmale's vision and by his ability to attract "exceptional talent" to the organization. Rachmale is enthusiastic and optimistic about the combined company's future. "This acquisition and merging talents of both companies gives us a bigger presence in the federal arena where we do most of our work. We will be able to offer even better client services because of the synergy that we are creating. We will have the scale, the capacity, the capital, and the people we need to compete and win in the rapidly expanding and cost conscious global market place."

Lakeshore and TolTest have had a relationship for more than 10 years and share complementary business strategies and corporate cultures. The new TolTest Division will continue to be led by its President, Ernest C. Enrique, PE and the existing Management Team. Mr. Enrique stated: "Lakeshore and TolTest have successfully worked together, and continue to work as joint venture and teaming partners, for the past several years on several Federal Government opportunities. Both companies know each other very well resulting in value added to our customers and making this a logical and seamless next step for future growth potential."

Mr. Rachmale stated: "Today's action is clearly in the best long-term interests of our customers, shareholders and employees, as well as for the City of Detroit, where we will increase our very strong commitment to the community. We expect Detroit to be our home for our Company. We expect that our continued investment in Detroit will make this our center for excellence for best in class in our construction business and in operations and administration."

Mr. Rachmale concluded: "This acquisition creates an extraordinarily strong and rapidly growing global competitor in our core businesses. Together, we will have the best service in the world, strong operational performance and the highest level of commitment in the industry." Through this acquisition, we will be able to invest and expand more effectively by reason of our combined scale, expected profitability and global reach. We have some of the finest executives with great realm of experience to allow our Company to make a positive impact. The organic growth of our respective companies is already strong, and the cost savings and revenue synergies opportunities are excellent.

SOURCE Lakeshore Engineering Services