PMC Carves Out UniversalPegasus

PMC Capital Partners has acquired UniversalPegasus International (UPI), a provider of engineering and construction management services, from publicly traded Huntington Ingalls Industries.

UPI was formed in February 2008 by KRG Capital Partners through the acquisition and merger of Universal Ensco and Pegasus International. Huntington Ingalls acquired UPI from KRG in June 2014.

Today, UPI provides engineering, project management, survey, and inspection services to the energy industry including onshore and offshore pipelines and facilities. UPI, led by CEO Tom Davison, is headquartered in Houston with an additional office in Calgary and currently has more than 600 employees.

According to Engineering News-Record, UPI is one of the top 10 engineering design companies in the petroleum sector and the 59th largest overall.

“We are extremely excited to acquire UniversalPegasus and its amazing team of 600 professionals,” said Chris Aye, a managing partner of PMC Capital. “Spearheaded by an impressive business leader in Tom Davison, the UPI team maintained record-level engineering design revenues during an economically crippling COVID-19 pandemic while building a backlog of business that will continue to support future success. Acquiring UPI coincides with PMC Capital’s vision to acquire and support an elite technical staff of engineers who deliver first-class mission-critical business services to blue-chip customers.”

PMC Capital invests from $10 million to $100 million in companies with revenues of more than $20 million and EBITDA of more than $2 million. Sectors of interest include business services, niche manufacturing, consumer, health care, and telecommunications, media and technology. The firm is based near Los Angeles in Sun Valley, California.

“UPI’s decades of record success delivering engineering, logistical, and construction management solutions captivated PMC Capital. Not only will PMC Capital support UPI in maintaining a high level of service for its clients — we look forward to building and exceeding UPI’s past accomplishments. We’re excited to partner with Tom and his team as we aggressively embark on a multifaceted growth strategy,” added Mr. Aye.

Newport News-headquartered Huntington Ingalls (NYSE: HII) designs, builds, overhauls, and repairs military ships. The company’s technical solutions division provides professional services to government and commercial customers in the areas of fleet maintenance and modernization, rapid prototyping, nuclear engineering and fabrication, and software development.

“We are pleased to have reached this agreement,” said Andy Green, HII’s executive vice president and president of the technical solutions division. “PMC Capital is a great new home for UniversalPegasus, its world-class people and services. It will enable UPI to continue to flourish, ensuring the business remains at the forefront of innovation and customer service in the future.”

PMC Capital is part of PMC Global, a multinational conglomerate founded in 1974 by Philip Kamins (PMC stands for Plastics Management Corp.) The firm operates businesses in the chemical, liquefied natural gas, pharmaceutical, plastics, packaging, construction, financial, machinery and fabrication, and health and beauty industries.

“With PMC Capital behind us, UPI will continue to differentiate itself and outperform the competition as one of the few remaining independent oil and gas engineering companies. We expect to emerge from the pandemic in a strong financial position poised for double-digit growth,” concluded Mr. Davison.

Ernst & Young Capital Advisors provided financial services to Huntington Ingalls Industries on this transaction.

© 2021 Private Equity Professional | February 9, 2021

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