Fife-based Rushforth Construction has been sold to Adolfson & Peterson Construction, a family-owned firm based in Minneapolis. The transaction was formally announced this morning in a release.

Speaking last week, majority shareholder and Rushforth board chairman Randy Rushforth said the deal would benefit his employees as it joins two like-minded companies.

Rushforth Construction had been owned by Randy Rushforth and company colleagues from the Nakamura family, sons of Kaz Nakamura, who joined the firm as it began to grow. Company President Kim Nakamura and brother Brad will remain at Rushforth Construction, as will Randy Rushforth – who has contracted to stay for at least three years.

The name of the Fife company will likewise remain intact.

[More:]

Randy Rushforth said he sold the company because he wanted to retire free of responsibility and liability. “A construction company isn’t like most other companies,” he said. He could have agreed to an earlier succession plan, whereby the Nakamura family would own the business, “if I wanted to risk everything I own for the next 15 years. We discussed it at length. I would have loved to see the original plan work, but it was not a practical option.”

Rushforth has constructed projects in seven Western states including Oregon, California, Arizona, Utah, Idaho and Montana, as well as Washington. The company employs 30 people in its Fife office, and another 120-150 workers in seasonal positions, Rushforth said.

Finding a buyer for the company, Rushforth said, involved a national search. He was looking for a buyer “committed to employees, committed to clients, committed to the community.”

Adolfson & Peterson, he said, met those criteria. “They looked like us, they thought like us, right down to the software we both use.”

Rushforth will be a wholly owned subsidiary of the Minneapolis firm.

Financial details were not released.

“People won’t see any changes,” Rushforth said. “We’ll have the same management team, the same people. We benefit with more efficiency and technological capabilities. We benefit from their expertise.”

Rushforth Construction is the Minneapolis company’s first acquisition, Randy Rushforth said. “It was a strategic acquisition. Since we’re regional, it fits into their plan.”

Rushforth Construction was founded in 1951 by Randy Rushforth’s father, Bill, now 91.

“A&P was interested three-and-a-half years ago,” Randy Rushforth said. A subsequent purchase engineered by another buyer failed. “This time, I went back to A&P. I contacted them. Were they interested? Absolutely.”

The due diligence began in January, he said. “It was tedious. You’ve just opened yourself to everything. They want to know what they’re getting.”

The deal closed privately last month, Rushforth said. “I have had some times of second-guessing myself (but) it was the most practical option. This is a tough business, and I’ve been here since 1976. I’ve been running it for a long time.”

Beyond the three years he can remain by contract, he said, “I don’t know that I will not be involved in Rushforth.”

Beyond the three years, he has agreed with A&P not to compete for two years.

With the purchase, he said, “We’ll be stronger, with more capabilities. We could go after almost any job. We could bring in people from other regions.”

Local architects, subcontractors and clients have been contacted, Rushforth said, and employees have been told of the sale. “The employees will have better benefits, medical benefits, 401(k).”

The Minnesota buyer has primarily bought nearly 60 years of best practices and a good name. “We don’t have a lot of equipment,” Rushforth said. “We have accounts receivable. They got our people, connections, reputation, repeat clients, jobs on the books.”

In a statement released this morning, Scott Weicht, A&P president, said, “We have been searching for a firm that would complement our existing regions and Rushforth is a good fit, not only in terms of geography, but also in terms of culture, commitment to quality and operating model.”

Adolfson & Peterson operates from offices in Minnesota, Arizona, Colorado, North Carolina and Texas, and was founded in 1946.

Fife City Manager Steve Worthington said today that he’s pleased Rushforth will remain in the city – and remain active in community service.

“Fife has enjoyed having Rushforth for many hears,” he said. “They have always been involved as a corporate citizen.”

The city has watched the company grow, Worthington said, and with that growth has come a certain civic pride in having the company known as a home-town business.

“It does generate a good deal of pride when you know the city you’re working in has several strong, quality businesses,” he said. “Milgard is another one for us.”

Laurel Potter, marketing coordinator for the City of Fife, is likewise pleased that the company will remain.
“Rushforth has been very active in the community,” she said today. “They’ve been a wonderful asset for the community. It sounds like they’ll stay that way.”

For more information about the companies, visit www.rushforth.com or www.a-p.com.