![]() ![]() But, for now, long-term domestic contracts remain limited. And the recent development of a new class of huge ocean freighters, with a deeper-than-normal draft, promises to boost demand for deepening big U.S. market, officials are hopeful that plans for future liquid natural gas terminals will yield dredging opportunities. authorities, and recently started work on a major land-reclamation project in Bahrain. It has performed harbor-clearing work in Iraq under contract to U.S. In response to the sluggish domestic market, Great Lakes has increased its presence abroad. ![]() industry leader Great Lakes, as well as rivals such as closely held Manson Construction Co. During 20, when the Corps cut back on its dredging contracts because of budget constraints linked to the Iraq conflict, earnings suffered at U.S. Army Corps of Engineers, which has responsibility for the nation's navigable waterways. The industry's biggest customer by far is the U.S. Harbors, river channels and other waterways always need to be kept clear, so dredging work never completely dries up.īut it's a competitive industry with high overhead-large boats equipped with complex machinery that needs plenty of maintenance-and profits come under pressure if there aren't enough contracts to keep fleet utilization high. They also "re-nourish" eroded beaches, by lifting sand that has swept out to sea and returning it to the beach. Great Lakes' dredging vessels pull silt, sand and mud from the bottom of harbors and navigation channels, then transport the material to places where it won't interfere with shipping lanes. In recent decades, the company has focused primarily on its dredging operations. Revenues in 2005 totaled $423.4 million, and, while the company generated a modest $12.7 million operating profit, hefty interest costs and other factors dragged net results to an $6.9 million loss. In the last week of 2006, the deal closed, and Great Lakes' shares began trading on the Nasdaq stock market. There things stood until last summer, when Madison Dearborn announced a plan to merge Great Lakes with a publicly traded shell company, Aldabra Acquisition Corp. ![]() And, in 2003, that owner sold the heavily leveraged company to Madison Dearborn Partners, a Chicago-based private-equity company, for $340 million. In time, Blackstone sold the dredging company to another private investment group. ![]()
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