First Reserve has agreed to acquire Utility Services Associates (USA). The executive management team will remain in place and will retain an equity interest in the company.
Utility Services Associates (USA) consists of C.W. Wright Construction Company, Booth & Associates, and Coastal Power & Electric. USA has over 60 years of experience in the electrical utility services industry and provides a range of maintenance, repair, rebuild and construction services for power transmission and distribution infrastructure across the Mid-Atlantic and Eastern regions of the United States. USA also provides design, engineering and storm-related restoration services. The company is based in Chester, VA (www.usaesop.com).
Upon closing of the transaction, Michael Lennon will join the USA management team. Prior to joining USA, Mr. Lennon was the President, CEO & Co-founder of InfrastruX Group where he grew the company to become a leader in the utility transmission and distribution services industry. While there, he executed a growth strategy which included 17 acquisitions. “I am extremely excited about the prospect of working alongside the teams at USA and First Reserve to help USA take the next step in its development to become a national leader of utility industry solutions,” said Mr. Lennon.
According to First Reserve, USA is exposed to positive, long-term macro trends in the electric transmission and distribution services industry, where growth in electricity demand has outpaced expansion of the electrical grid’s capacity. Aging infrastructure and historical under spending has also created a need for increased investment in the electrical grid. As utilities continue to seek to outsource maintenance, repair and construction services to third-party providers in order to focus on their core operating activities, First Reserve believes Utility Services Associates is well-positioned to capitalize on these trends.
“First Reserve’s investment is an important milestone for our company. As an employee-owned company since 1999, we’ve grown to become a leading provider of transmission and distribution services in the Mid-Atlantic and Eastern regions,” said Jay Spruill, CEO of USA. “We believe that the business model and operating expertise that we’ve successfully developed combined with the strategic vision and additional growth capital from First Reserve and Michael Lennon’s experience building similar businesses in the past position us well for continued success in the space.”
First Reserve is a private equity firm with a focus on the energy industry. The firm was founded in 1983 and has offices in Houston, TX; Greenwich, CT and London, UK (www.firstreserve.com).
“We are delighted to partner with the management team of USA and believe this platform is well-positioned for continued growth, both in terms of geography and service type,” said Jeff Quake, Managing Director of First Reserve.
© 2013 PEPD • Private Equity’s Leading News Magazine • 9-6-13
