Morgan Stanley (MS) announced Tuesday that its middle-market private equity division has closed a majority investment deal with Olsson, Inc., a prominent employee-owned engineering and design firm.
The transaction is structured to preserve what made Olsson special in the first place. Olsson employees are reinvesting significantly in the deal, ensuring their interests remain aligned with the company's long-term trajectory. It's the kind of arrangement that sounds good in press releases but actually matters here—employee ownership has been core to Olsson's identity for decades.
Building an Infrastructure Portfolio
For Morgan Stanley Capital Partners, this represents the fourth platform investment in infrastructure services since 2021. The firm previously acquired stakes in Resource Innovations, Apex, and Alliance Technical Group, signaling a deliberate strategy to build out capabilities across the infrastructure landscape.
Olsson brings serious scale to that portfolio. Founded in 1956 in Lincoln, Nebraska, the company now employs more than 2,000 people across 35 offices nationwide. Its work spans engineering design and consulting in technology, transportation, water, power, and federal markets—essentially the backbone systems that keep modern life functioning.
Eric Kanter, who leads industrial services for Morgan Stanley Capital Partners, emphasized that the firm is "proud to partner with Olsson" while preserving its employee-owned culture. He noted that the partnership positions Olsson to expand into targeted geographies and industries, leveraging MSCP's infrastructure experience and network.
Preserving Culture While Scaling Up
Olsson CEO Brad Strittmatter framed the deal as a "true partnership" that aligns with the company's people-first culture. The firm will keep its name, brand, and existing leadership team intact—important signals when private equity gets involved.
Strittmatter said Olsson plans to invest in new technologies and expertise while tapping into Morgan Stanley Capital Partners' network and resources to pursue growth opportunities. It's the classic PE playbook: maintain what works, add capital and connections, then expand.
The Environmental Financial Consulting Group served as Olsson's exclusive financial advisor on the transaction, with Koley Jessen providing legal counsel.
Morgan Stanley shares were trading down 1.81% at $183.19 on Tuesday, still hovering near the stock's 52-week high of $188.82.
