Industrial Growth Partners (IGP) has sold SPL, a provider of testing, inspection and certification services for the energy industry, to Sentinel Capital Partners.
Houston, Texas-based SPL provides testing, measurement, analysis and reporting services for production, midstream and finished products including crude, condensate, and natural gas assets. SPL has more than 1,700 customers, including some of the largest global energy companies.
SPL operates 22 lab testing and service centers that each year analyze hundreds of thousands of samples of hydrocarbons, lubricants, and wastewater to determine physical and chemical compositions. The company’s service centers employ more than 250 technicians who inspect, install, and maintain field measurement systems.
IGP acquired SPL in September 2016 and during its hold the company closed six add on acquisitions including environmental and chemical analytical testing company Oxidor Laboratories (January 2022), energy consulting and engineering company AFS (September 2021), the laboratory and measurement services business of Banded Iron US (November 2019), oil and gas measurement service provider AMI (January 2019), independent laboratory Alcor Petrolab (February 2018) and oil and gas measurement service provider AMS (September 2017).
“IGP was an incredible partner to SPL,” said Jeff Hibbeler, the CEO of SPL. “Through five and a half years of partnership, we were able to penetrate new markets, expand our operating footprint domestically and internationally, and launch several new proprietary digital solutions, all while nearly tripling the size of our business. SPL is now positioned better than ever for growth across several end markets and geographies – we are grateful for the partnership and strategic support provided by IGP.”
Industrial Growth Partners provides equity capital to lower-middle market niche manufacturing and industrial services companies with revenues of up to $250 million. The firm invests equity in a range of transactions involving a change of ownership, such as management buyouts, leveraged buyouts, corporate divestitures, recapitalizations and management buy-ins. IGP was founded in 1997 and is based in San Francisco.
“SPL’s advanced capabilities, deep expertise, best-in-class technology, and long-term relationships make the company a trusted partner to a diverse network of energy-related asset owners, operators, and customers, said Scott Perry, a partner at Sentinel. “SPL’s senior leadership team, with nearly 200 years of combined experience, has driven an impressive organic growth plan, including completion of six acquisitions since 2017.”
New York City-based Sentinel invests in management buyouts, recapitalizations, corporate divestitures, and going-private transactions of businesses with EBITDAs up to $80 million. The firm targets eight industry sectors: aerospace and defense, business services, consumer, distribution, food and restaurants, franchising, healthcare, and industrials.
© 2022 Private Equity Professional | April 22, 2022
