CIVC Partners and True North Equity have sold PowerTeam Services to Kelso & Company. PowerTeam will be merged with Kelso’s current portfolio company Power Holdings, a provider of maintenance services to the electrical utility industry.
PowerTeam is a provider of infrastructure services to the gas and electric utility industry. Services include the repair, replacement, maintenance, and installation of natural gas and electric transmission and distribution infrastructure. PowerTeam provides services through three operating units: KS Energy Services, Southeast Connections, and Distribution Construction. PowerTeam has more than 1,400 employees and is based in Milwaukee (www.powerteamservices.com).
During CIVC’s and True North’s ownership of PowerTeam, revenue more than quadrupled driven by both organic and acquisition-based growth strategies. A key part of the growth strategy has been to pursue acquisitions in order to build a super-regional infrastructure services provider. CIVC Partners and True North Equity first invested in PowerTeam through the acquisition of KS Energy Services (New Berlin, WI) in June 2010. In September 2011, PowerTeam acquired Southeast Connections (Conyers, GA) and in July 2012 acquired the utility services division of The Brewer Company (Cincinnati, OH).
“PowerTeam’s impressive growth trajectory was supported by CIVC’s deep understanding of the industry and willingness to work alongside management to pursue various growth opportunities,” said Dennis Klumb Jr., CEO of KS Energy Services. “Our ability to acquire three complementary companies since 2011 was greatly enhanced by CIVC’s capital markets expertise and strategic guidance.”
PowerTeam is led by Jim Wigginton (CEO, PowerTeam), Jeff Wigginton (COO, PowerTeam), Dennis Klumb Jr. (CEO, KS Energy Services), Billy Campbell (CEO, Southeast Connections), and Fred Cripps (CEO, Distribution Construction). The entire senior management team will remain with the company post closing.
“Dennis, Billy and Fred, along with their respective teams, have all done an exceptional job expanding relationships with existing customers and penetrating new customers through best-in-class service, an industry-leading safety culture, and a proven ability to execute complex projects on-time and on-budget, while at the same time supporting Jim and Jeff in their strategic acquisition and integration efforts,” said Chris Perry, a partner at CIVC.
CIVC invests from $15 million to $85 million in middle-market companies that have revenues from $40 million to $300 million and minimum EBITDAs of $5 million. Sectors of interest include business services and financial services. CIVC currently manages over $1.2 billion in private equity funds and is investing out of CIVC Partners Fund IV. Since its founding in 1989, the firm has completed 54 platform transactions and dozens of add‐on acquisitions. CIVC is based in Chicago (www.civc.com).
True North Equity invests in companies that perform outsourced services in support of natural gas and electric utilities. Target companies will have EBITDAs of $5 million to $20 million. The firm is based in Plymouth, MI (www.truenorthequity.com).
The acquirer of PowerTeam Services, Power Holdings, was acquired by Kelso & Company in December 2012 from Huntsman Gay Global Capital for $380 million. Power Holdings is a provider of scheduled and emergency outsourced maintenance services to the electrical utility industry. The company is comprised of two operating subsidiaries; T&D Solutions located in Alexandria, LA (www.tdsolutions.com), and Associated Diversified Services located in Hartselle, AL (www.wearediversified.com).
Harris Williams & Co. served as financial advisor and Kirkland & Ellis served as legal advisor to PowerTeam.
© 2013 PEPD • Private Equity’s Leading News Magazine • 5-7-13
