Lee Contracting buys Florida water contractor Cathcart Construction

Lee Contracting has acquired Cathcart Construction Company, adding a Florida water infrastructure business as its first deal outside Michigan and third acquisition since 2023. The move expands the employee-owned contractor’s footprint, deepens its water and wastewater capabilities, and pushes its total workforce above 900.

Why it matters: - Lee Contracting is moving into Florida’s water infrastructure market, one of the fastest-growing infrastructure segments in the U.S. - The acquisition broadens the Pontiac, Michigan-based contractor’s geographic reach beyond its home state for the first time. - The deal adds scale to Lee Contracting’s employee-owned model and expands the combined company’s workforce and revenue base.

What happened: - Lee Contracting announced June 26 that Cathcart Construction Company has become a wholly owned subsidiary. - Cathcart Construction Company is a central Florida infrastructure contractor focused on water systems and infrastructure. - The acquisition is Lee Contracting’s first outside Michigan. - The acquisition is Lee Contracting’s third since 2023. - Cathcart Construction Company is headquartered in Winter Springs, Florida, with a branch office in the Tampa Bay area. - Cathcart Construction Company employs nearly 300 people. - Cathcart Construction Company will continue operating under its own name from its existing locations. - Cathcart Construction Company’s leadership and workforce will remain unchanged.

The details: - Cathcart Construction Company was founded in 1991 and has delivered water infrastructure projects across central Florida for more than three decades. - Lee Contracting said the acquisition strengthens its water infrastructure capabilities and diversifies its revenue base. - Lee Contracting also said the deal extends its regional footprint into a high-demand market. - Frederick E. Cauley, president and CEO of Lee Contracting, said the company is reinvesting profits as a 100% employee-owned business to drive long-term value. - Cauley said Cathcart Construction Company has built a strong business in a high-demand market and that the two organizations are positioned to grow together. - Florida’s water infrastructure market is being driven by sustained population growth and demand for reliable, modern water systems. - Cathcart Construction Company’s long project history and client relationships made it a natural fit for Lee Contracting’s growth strategy. - The acquisition follows Lee Contracting’s 2023 purchase of Johnston Contracting Inc., a mid-Michigan earthwork and underground utilities contractor. - The acquisition also follows Lee Contracting’s 2025 purchase of Midwest Power Systems Inc., a water and wastewater contractor with more than 200 treatment plant projects across Michigan, northern Ohio and Indiana. - Lee Contracting and its subsidiaries now employ more than 900 people. - Lee Contracting is a 100% employee-owned industrial and infrastructure contractor headquartered in Pontiac, Michigan. - The company has locations in Grand Rapids, Midland and Grand Blanc, Michigan. - Lee Contracting serves manufacturers, utilities, municipalities and other clients with complex construction and maintenance needs. - Lee Contracting brings together 13+ in-house trades under a single point of accountability. - Cathcart Construction Company is based in Florida and specializes in water systems and infrastructure. - Cathcart Construction Company’s website is the company’s announcement.

Between the lines: - The acquisition shows Lee Contracting is using M&A to grow beyond its core Michigan base rather than relying only on organic expansion. - The deal also suggests employee ownership is being used as a retention and growth platform for a larger multi-state operation. - Florida’s population and infrastructure demand create a strategic entry point for contractors with water and wastewater expertise.

What's next: - Cathcart Construction Company will continue serving central Florida under its existing brand and leadership structure. - Lee Contracting is likely to keep building its multi-state platform around infrastructure, water, wastewater and related industrial work. - The combined company will continue integrating Cathcart Construction Company into Lee Contracting’s broader employee-owned network while keeping local operations intact.