Warren Buys Magnolia River

Warren Equity Partners has acquired Magnolia River International, a provider of inspection and engineering services to utilities and pipelines.

Magnolia River’s technology-enabled underground services include pipeline replacement and deployment, integrity management, and geographic information systems (GIS).

The company also has in-house software products – sold under the FlowGIS and FieldLogIQ platforms – that are used to assist customers in reducing costs, improve data management, and meet compliance regulations.

Customers of Magnolia range from investor-owned natural gas and water utilities to municipalities and industrial customers across 25 states. Magnolia has more than 400 employees that work in twelve offices in Alabama, Florida, Louisiana, Michigan, Mississippi, Missouri, North Carolina, and Texas. The company, founded in 2000, is headquartered 115 miles south of Nashville in Decatur, Alabama.

“We chose to partner with Warren Equity because of their utility and industrial services expertise, proven track record of scaling similar business models, and strong cultural fit,” said Heath McCleskey, the president of Magnolia River. “With Warren Equity, we have found a value-add partner who will help us execute our strategic growth plan and who shares our vision of making the world safer by providing innovative solutions to the utility infrastructure industry.”

“We are excited to partner with the Magnolia River team. Over its 20-year history, the company has become a leading provider of infrastructure inspection services with a strong reputation for safety, service, and technical expertise,” said Steven Wacaster, a managing partner at Warren Equity.

Warren Equity invests from $5 million to $40 million in North American-based companies that have from $3 million to $15 million of EBITDA and total enterprise value of less than $150 million. Sectors of interest include industrial, infrastructure, and business services. The firm was founded by Steven Wacaster, Scott Bruckmann, and Henrik Dahlback and is based in Jacksonville Beach, Florida.

“Magnolia River sits at the intersection of several, compelling industry tailwinds including continued investment in infrastructure safety and efficiency, growing adoption of technology and technology-enabled services to track utility asset performance and optimize field operations, and increasing demand for outsourced services,” added Michael Ouyang, a vice president at Warren Equity. “We look forward to working with management to continue to drive organic growth and deploy an effective acquisition strategy in this highly fragmented market.”

Warren Equity acquired a majority interest in Magnolia River from founder Ronnie Hoff and other company shareholders. “We are proud to partner with a firm that is strongly aligned with the culture and values of Magnolia River and who will provide valuable stewardship during our next phase of growth,” said Mr. Hoff.

The buy of Magnolia River is Warren Equity’s 14th platform investment and 45th acquisition since its formation in mid-2015.

© 2021 Private Equity Professional | April 29, 2021

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