Clayton, Dubilier & Rice (CD&R) has agreed to acquire PowerTeam Services, a provider of maintenance and construction services to the utility industries, from Kelso & Company.
PowerTeam provides services to maintain, repair, upgrade, and install natural gas and electric distribution and transmission systems. The company’s customers include regulated utilities located in the southeastern and midwestern sections of the US. PowerTeam, headquartered in Cary, NC, has approximately 4,200 employees and 42 locations in 21 states with main operating offices located in Alabama, Georgia, Indiana, North Carolina, Texas, and Wisconsin (www.powerteamservices.com).
“The company has a very promising future,” said John Krenicki, a CD&R Operating Partner and the former Vice Chairman of General Electric and President and CEO of GE Energy. “PowerTeam’s management has built a strong market position and we share their vision for the future, which we believe will create rewarding career opportunities for the company’s more than 4,000 talented employees.” Mr. Krenicki will serve as the Chairman of PowerTeam post-closing.
“PowerTeam’s demonstrated ability to deliver safe, reliable, and high-quality services to its utility customers provides a strong platform to accelerate growth and expand the company’s geographic footprint,” said CD&R Partner Nate Sleeper. “We look forward to supporting the business through its next phase of growth while continuing to provide customers with exceptional service levels.”
“PowerTeam’s outlook is supported by favorable secular tailwinds, which we believe have plenty of runway,” said CD&R Principal Andrew Campelli. “Together with a targeted acquisition strategy, PowerTeam can continue to build its capabilities and reach to even better serve its existing and potential customers.”
CD&R invests in European and US-based businesses. Since founding in 1978, the firm has invested $26 billion in 81 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).
Kelso, which originally invested in PowerTeam in December 2012, is one of the oldest and most established firms specializing in private equity investing. Since 1980, Kelso has made investments in over 120 companies in a range of industry sectors. The firm is currently investing out of its ninth fund, Kelso Investment Associates IX, which closed in 2016 with $2.6 billion of capital. Kelso was founded in 1971 and is based in New York (www.kelso.com).
Middle market investment bank Harris Williams (www.harriswilliams.com) is the financial advisor to PowerTeam. The transaction is being led by Managing Directors Drew Spitzer and Matt White, Director Ian Thomas, Vice President Neha Shah, and Associate Will Forston. “Through superior execution, investment in scalable infrastructure and focus on recurring maintenance services, PowerTeam has built a remarkable platform in the utility services sector,” said Mr. Spitzer. “With attractive tailwinds in utility end markets, the company is poised to benefit from long-term investment in both gas and electric infrastructure.”
Kirkland & Ellis (www.kirkland.com) provided legal services to CD&R on this transaction.
© 2018 Private Equity Professional | August 23, 2018