Cotton Creek Capital announced today the recapitalization of Chain Electric Company, a regional provider of power line installation and maintenance services. The investment by Cotton Creek, through its latest private equity fund, Cotton Creek Capital Partners II, L.P., will be made in conjunction with the Chain family who will remain significant shareholders in the company.
Chain Electric is a regional provider of power line installation and maintenance services, primarily servicing the distribution and transmission grids across the Gulf Coast and Midwest. Chain Electric specializes in challenging terrains, including mud, swamp, and marsh work, and possesses one of the largest fleets of amphibious equipment in the industry. The company has over 600 employees and provides complete transmission, distribution, substation, and storm recovery services across 15 states, as well as commercial and industrial electrical services across much of Mississippi. The company was founded in 1955 and is based in Hattiesburg, MS (www.chainelectric.com).
Chain Electric will continue to be led by its President and CEO, Bob Chain, Jr., and Senior Vice President and COO, John Chain, both of whom have been managing the company for more than a decade. As a part of the recapitalization, Bob Chain will become Chairman of the company.
“As one of the oldest service providers in the Southeast, Chain has built a business around the strength of our character, quality of our service, and focus on our customers. The capital and resources that come from our partnership with Cotton Creek will enable us to continue to grow and expand our business while maintaining the family values that have made us an employer of choice. We look forward to continuing the strong legacy my father began in 1955 by always placing the highest priority on our customers and safety,” said Bob Chain.
Cotton Creek Capital invests in lower middle market companies in manufacturing, value-added distribution, industrial services, business services, healthcare services and consumer staples. The firm invests in companies with enterprise values between $15 million and $200 million, partnering with management teams on a variety of transactions, including buyouts, recapitalizations, buy-and-builds, and corporate divestitures. Cotton Creek Capital is affiliated with Brownlie & Braden, a provider of financial advisory services to high net worth families. The firm is based in Dallas, TX (www.cottoncreekcapital.com).
“We look forward to partnering with Bob, John, and he rest of the Chain Electric team in support of continued growth,” said Cotton Creek Managing Director, Antonio DiGesualdo, “Through the continued leadership of Bob and John Chain and the capital flexibility provided by the recapitalization, we anticipate a substantial investment in specialized equipment and skilled workforce to further establish Chain Electric as a leader in the power line services market.”
