Brand Energy & Infrastructure Services, a portfolio company of Clayton, Dubilier & Rice (CD&R), and Safway Group, which is owned by Odyssey Investment Partners, have agreed to combine. CD&R will be the controlling shareholder of the combined company and Odyssey, which acquired Safway in December 2009 from ThyssenKrupp AG, will exit is investment.
CD&R acquired Brand in November 2013 when it acquired Brand Energy & Infrastructure Services and the infrastructure business of Harsco Corporation and then combined the two
companies under the Brand name. At that time it was estimated the merged companies had annual revenues of approximately $3 billion. At closing of this transaction, which is expected to occur in the third quarter of 2017, the combined Brand and Safway businesses will have annual sales of approximately $5 billion.
Safway Group is an industrial and commercial services company that provides access equipment such as scaffolding and also provides insulation, fireproofing and industrial coatings services. The company serves companies in the commercial construction, elevator, infrastructure (bridges, railroads, airports, shipping ports, stadiums and arenas), manufacturing, marine, petrochemical, power (traditional and renewable), and oil and gas sectors. Safway Group companies include All-American Scaffold; CL Coatings; Dalco; Industrial Coatings & Fireproofing; MobleySafway; New England Scaffolding; Redi Solutions; Safway Atlantic; Safway Services; Safway Services Canada; S&E Bridge & Scaffold; and Swing Staging. Safway was founded in 1936 and has 115 locations in the US and Canada with headquarters in Waukesha, WI (www.safwaygroup.com).
Brand, like Safway, is a provider of access equipment and coating services to energy, industrial and infrastructure customers. Brand has 210 branches and its services include work access, corrosion management, atmospheric and immersion coatings, insulation services, fireproofing & refractory, and mechanical services. The company is headquartered in Kennesaw, GA (www.beis.com).
CD&R invests in European and US-based businesses. Since founding in 1978, the firm has invested $23 billion in 72 companies across a range of industries with a total transaction value of approximately $100 billion. CD&R was founded in 1978 and is based in New York and London (www.cdr-inc.com).
Odyssey makes control investments in middle-market companies in a variety of industries including industrial manufacturing; business, financial and healthcare services; aerospace products; and localized and route-based service businesses. The firm has approximately $4 billion of capital under management and has offices in New York and west of Los Angeles in Woodland Hills, CA (www.odysseyinvestment.com).
Goldman Sachs, & Co. served as Brand’s financial advisor and is providing financing in support of the transaction. Financial advisory services and financing are also being provided to Brand by Barclays, ING Capital, and Peter J. Solomon Company. Harris Williams & Co. is the financial advisor to Safway.
© 2017 Private Equity Professional | March 20, 2017
