OMERS Private Equity has agreed to sell United States Infrastructure Corporation, a provider of outsourced utility locating services, to Leonard Green & Partners. Committed debt financing has been provided by Deutsche Bank, General Electric Capital Corporation and RBC Capital Markets. The transaction is expected to close in the third quarter of 2013.
United States Infrastructure Corporation (USIC) is a provider of outsourced utility locating services with operations in 31 states and a small presence in Canada. USIC services over 42 million utility locates annually. The company is based in Indianapolis (www.usicinc.com).
OMERS Private Equity (OPE) acquired USIC in 2010, and supported the company’s acquisition of Consolidated Utility Services in 2011 and two smaller tuck-under acquisitions. Through these acquisitions and a recovery in construction activity in key US markets, USIC’s revenue has grown over 65% during OPE’s ownership.
“We are extremely proud of our affiliation with Mike Stayton, CEO of USIC, and his talented management team as we have worked together to create a true industry leader. OPE’s investment in USIC is a great example of our approach to working with strong management teams through a period of transformative growth to build industry leading platforms to generate strong returns. This is an excellent validation of the success of our direct investment program,” said Michael Graham, Senior Managing Director and Country Head US, for OPE.
“This transaction marks an exciting new chapter for the company. USIC has grown significantly in the past three years, and is now poised to take advantage of new growth opportunities with USIC’s outstanding customers. We appreciate the support and partnership OMERS Private Equity offered throughout the life of their investment and look forward to continuing to grow USIC with our new partner, Leonard Green,” said Mike Stayton, CEO of USIC.
OMERS Private Equity manages the private equity activities of OMERS, one of Canada’s largest pension funds. The group’s investment strategy includes the active ownership of businesses in North America and Europe. Sectors of interest include manufacturing, financial and business services, industrial and consumer products, transportation, and technology. Investment sizes range from $100 million to $500 million. The firm is located in Toronto with offices in New York and London and has $6 billion of investments under management (www.omerspe.com).
“USIC is the leader in the utility locating industry with strong brand equity, a proven business model and significant opportunities for growth,” said Timothy Flynn, Partner at Leonard Green. “We are excited to partner with USIC’s talented management team and look forward to supporting the next phase of the company’s growth.”
Leonard Green & Partners’ invests in middle-market companies with market-leading franchises and defensible competitive positions, attractive growth prospects and proven management teams. The firm’s investments are in the form of traditional buyouts, going-private transactions, recapitalizations, growth capital investments, corporate carve-outs and selective public equity and debt positions. Sectors of interest include retail, distribution, healthcare, aerospace/defense and consumer/business services. Leonard Green & Partners was founded in 1989 and has $15 billion of capital under management. The firm is located in Los Angeles (www.leonardgreen.com).
Harris Williams & Co. and Barclays Capital served as financial advisors to USIC. Deutsche Bank and RBC Capital Markets acted as financial advisors to Leonard Green in connection with the transaction.
© 2013 PEPD • Private Equity’s Leading News Magazine • 6-25-13
