Allied Industrial Partners (AIP) has formed CES Power to carve out CAT Entertainment Services from Ring Power Corporation.
CES Power is a provider of power services for the broadcasting, entertainment, emergency response and industrial sectors. The company’s services and equipment includes power generation and distribution; chillers, air conditioners and electric heaters; lighting and screens; ramps and matting; and EPA-emission certified green equipment.
Recent CES projects include the 2021 NFL Draft and the 2021 NCAA Final Four tournament, as well as multiple stadium touring acts and the largest music festivals in the world. Memphis-headquartered CES was founded in 2000 as a division of Ring Power and is today led by co-founder and CEO Greg Landa.
“We are thrilled to be partnering with AIP as we take this next step,” said Mr. Landa. “As a standalone company, we will have greater opportunities to accelerate our growth and greatly enhance the user experience for our customers and our team.”
“CES represents a compelling opportunity to invest in the market leader of distributed power services in the entertainment space, and the timing could not be better as demand for live events and complex mobile power needs increases,” said Bradford Rossi, a co-founder and managing partner at AIP. “We were attracted by the company’s team-oriented culture, track record, and reputation for high-quality service, and look forward to working closely with Greg and the talented employee base as we pursue next-level growth.”
“We were very impressed with the company’s ability to weather the pandemic and are excited about the opportunities for future organic expansion and add-on acquisitions,” said Philip Wright, a co-founder and managing partner at AIP. “The CES team’s technical capabilities and versatility are unparalleled in the industry and provide numerous growth opportunities.”
St. Augustine, Florida-based Ring Power, the seller of CES, is one of the largest US Caterpillar dealers with eight operating divisions. Ring Power will retain a minority stake in CES in partnership with AIP.
“We are incredibly proud and thankful for all of the hard work from the CES Power team over the years and are excited for this next chapter,” said David Alban, the president of Ring Power. “We believe AIP is the right partner to help CES reach its full potential and have been impressed with the transformational work that has taken place within the first month of our partnership together.”
Allied Industrial Partners invests in lower and middle-market companies that have EBITDA from $2 million to $25 million. Sectors of interest include industrial rentals, manufacturing, distribution, environmental services and infrastructure sectors. AIP was founded by Mr. Rossi and Mr. Wright in 2019 and is headquartered in Houston.
Eaton Partners, a Stifel business, was the financial advisor and placement agent to AIP on a capital raise to support the acquisition of CES Power.
Prior to the buy of CES, in November 2020, AIP formed Dovetail Infrastructure Services to carve out Aqua Pipeline, a large-scale water pipeline located in northeast Pennsylvania, from Philadelphia-based Essential Utilities.
© 2021 Private Equity Professional | July 23, 2021