BCP Exits Brown & Root

Bernhard Capital Partners (BCP) has agreed to sell its majority stake in Brown & Root Industrial Services to its co-investment partner, publicly traded KBR.

Brown & Root is a provider of specialty industrial services—engineering, construction, and maintenance—to companies operating in the downstream refining, petrochemicals, chemicals, pulp and paper, alternative fuels, clean energy, manufacturing, and government infrastructure sectors.

The company undertakes both large-scale construction projects and ongoing maintenance and regulatory compliance work from 22 locations across the United States, Mexico, and Canada, and has more than 10,000 employees. Brown & Root is headquartered in Baton Rouge, Louisiana.

Brown & Root was founded in 1919 by brothers Herman and George Brown, with financial backing from their brother-in-law Dan Root. The company was acquired by Halliburton in 1962, and in 1998 Halliburton merged the recently acquired M.W. Kellogg (part of its 1998 buy of Dresser Industries) with its existing subsidiary Brown & Root to form Kellogg Brown & Root (KBR) as its Industrial Services Americas division. In July 2015, KBR spun off this division in partnership with BCP, leading to the establishment of Brown & Root Industrial Services.

KBR is a Houston-headquartered provider of science, technology, and engineering services for governments and commercial customers operating in the aerospace, defense, energy, and manufacturing services sectors. The company operates through two segments: Government Solutions, which provides space exploration support, defense systems integration, cybersecurity, and military training; and Sustainable Technology Solutions, which provides services for energy transition projects, advanced process technologies, and industrial services. KBR serves customers in sectors such as aerospace, defense, energy, and advanced manufacturing.

“As one of BCP’s original investments, our partnership with Brown & Root Industrial Services is emblematic of our approach to supporting world-class management teams and executing on a shared vision for growth,” said Mark Spender, a partner at BCP. “We are proud of all that we have accomplished together to position the company as a leading industrial services provider in North America, while creating significant value for our investors. We look forward to all that the Brown & Root Industrial Services team will continue to accomplish in this next chapter.”

Baton Rouge, Louisiana-headquartered Bernhard Capital is an energy services-focused private equity firm established in 2013 by Jim Bernhard and Jeff Jenkins. The firm has deployed capital through five funds and has approximately $5 billion of assets under management.

“Our partnership with Jim Bernhard, Jeff Jenkins, Mark Spender and the entire BCP team has been instrumental in our growth and success over the last decade,” concluded Andy Dupuy, the CEO of Brown & Root. “Their vision, guidance, and conviction have been instrumental in enhancing our reputation as the partner of choice for customers across the industrial services market, while remaining true to the principles that have guided us since 1919. This milestone marks the successful culmination of a rewarding partnership, and we are confident our business and our team are well positioned for continued success.”

Houlihan Lokey was the financial advisor to BCP on this transaction, which is expected to close in the third quarter or early fourth quarter of 2025.

© 2025 Private Equity Professional | August 12, 2025