The Riverside Company and True North Equity have formed IFS Group, a new platform holding company that will acquire providers of non-discretionary industrial and field services to the power generation and process industries.
As part of the launch of IFS Group, the company acquired Summit Environmental Services, a provider of outsourced industrial cleaning, excavation, and field services for Mid-Atlantic and Midwest based customers in the power generation, utility, oil and gas, and general industrial markets. Summit Environmental Services is based southwest of Pittsburgh in Belmont, WV (www.summit-environmental.net).
“The investment in Summit is an outstanding way to begin this initiative,” said Riverside Partner Tim Gosline. “Summit brings a best-in-class approach to safety and customer service and we believe that Riverside and True North’s financial resources, strategic expertise, and operational experience will help Summit expand on the strong growth and success it has realized for over a decade.”
Summit CEO Chuck Wright and the existing Summit management co-invested in the transaction and will continue to manage the company’s day-to-day operations. “The partnership with Riverside and True North is an exciting opportunity for us. It will provide us access to the additional capital and resources necessary to extend our geographic reach, expand our service offering and further meet the needs of our customers. We look forward to building our business as part of a broader platform strategy.”
Riverside and True North are actively seeking additional acquisition opportunities for IFS Group that offer complementary, non-discretionary industrial services and access points into new geographies and customers in industrial end markets.
IFS Group CEO and True North Managing Partner Jeff Wigginton anticipates significant growth potential for the platform through future acquisitions and organic growth initiatives. “We are thrilled to announce our new partnership with Summit Environmental and Riverside, as we look to build another highly successful platform in the industrial services space,” said Mr. Wigginton. “Our strategy will remain as it has in the past: To partner with best-in-class operators to build a super-regional company providing a turnkey suite of services to power and petrochemical plants, refineries, and oil and gas field operations.”
True North Equity invests in companies that perform outsourced services in support of refineries, petrochemical and power plants, and oil and gas production. Target companies will have EBITDAs of $5 million to $20 million. The firm is based in the Detroit suburb of Birmingham (www.truenorthequity.com).
The Riverside Company is a global private equity firm focused on investing in and acquiring growing businesses valued at up to $250 million (€200 million in Europe). Since its founding in 1988, Riverside has invested in more than 360 transactions. The firm’s international portfolio includes more than 75 companies. Riverside is headquartered in New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).
Working with Mr. Gosline on the transaction for Riverside were Vice President Ryan Richards, Senior Associate Jason Fulton and Associate Marc Baudry. Partner Anne Hayes worked on financing the transaction for the firm.
The PrivateBank provided financing for the transaction and Jones Day advised Riverside on the investment.
© 2015 PEPD • Private Equity’s Leading News Magazine • 3-3-15
