CD&R Closes PowerTeam Buy

Clayton, Dubilier & Rice (CD&R) has closed its buy of 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. Approximately two-thirds of the company’s revenue is related to natural gas systems, and more than 70% of revenue is derived from distribution infrastructure. 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).

At closing of the transaction, Brian Palmer was named the new CEO of PowerTeam replacing Roxanne Bowman who has been the company’s CEO since 2013. Mr. Palmer joins the company after serving at General Electric for more than 30 years, most recently as the president and CEO of the Measurement & Controls division of GE Oil & Gas, a provider of asset performance, control, and protection services to energy and industrial infrastructure companies. During his tenure with this division, Mr. Palmer acquired and integrated 11 companies to create a global leader in the market with more than $4.5 billion in annual revenues.

“The growth opportunities in front of PowerTeam are very compelling,” said Mr. Palmer. “I am excited to join the 4,200 PowerTeam associates who work tirelessly every day to safely deliver top-notch service to our customers.”

“Brian is well-equipped, strategically and operationally, to drive accelerated growth and geographic expansion in PowerTeam’s business,” said John Krenicki, Chairman of PowerTeam, CD&R Operating Partner, and former Vice Chairman of General Electric and President and CEO of GE Energy. “We also thank Roxanne for her leadership and hard work to position the company for its next phase of growth.”

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 & Company, 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) was the financial advisor to PowerTeam and Kirkland & Ellis (www.kirkland.com) provided legal services to CD&R on this transaction.

© 2018 Private Equity Professional | October 2, 2018

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