Stellex Capital Management has acquired Industrial Construction Services (ICS), a provider of electrical services to industrial and commercial sectors, from Stone Arch Capital.
The ICS platform was formed by Stone Arch in September 2018 with the acquisition of Louisiana-based Electrical and Instrumentation Unlimited, a company specializing in industrial electrical and instrumentation services across the Gulf Coast, Mid-Atlantic, and Southeastern regions of the United States.
Subsequent acquisitions have expanded the platform’s reach, including Arkansas-based South Ark Electric in September 2019, Tennessee-based Funderburk Electrical Services in October 2020, Florida and Alabama-based Bright Future Electric in September 2021, and Alabama-based Goss Electric in February 2024.
Today, Industrial Construction Services provides electrical and instrumentation contracting and maintenance services to companies operating in healthcare, energy, and industrial sectors. The company has experience with both complex, large-scale projects alongside specialized jobs.
Houston-based ICS is led by CEO Cory Borchardt and has more than 1,300 employees and operates nationwide with offices and facilities in Florida, Alabama, Texas, Arkansas, Louisiana, Tennessee, North Carolina, and Massachusetts.
“ICS has built a strong foundation of trust delivering safe, efficient, and cutting-edge solutions,” said Mr. Borchardt. “With Stellex’s resources and shared vision, we are confident in our ability to accelerate growth and deliver even greater value to our clients and partners.”
Going forward, Stellex will look at add-on acquisitions that build on or complement the company’s service offerings. “We believe the company has demonstrated an impressive track record and a truly differentiated service offering,” said Olivia Zhao, a principal at Stellex. “Our team sees strong opportunities to expand ICS’ services capabilities and geographic footprint.”
The buy of ICS underscores a growing trend in private equity to invest in the electrical services sector which is seeing increasing demand for advanced electrification equipment and infrastructure modernization.
New York City-headquartered Stellex invests from $50 million to $150 million in United States or Europe-based companies with enterprise values from $50 million to $500 million and revenues greater than $100 million. Sectors of interest include specialty manufacturing, industrial and business services, aerospace and defense, automotive, government services, transportation, logistics, and food. Stellex has additional offices in Detroit, Pittsburgh, and London.
Houlihan Lokey was the financial advisor to ICS on this transaction.
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