ERI Solutions, a portfolio company of Spire Capital since November 2018, has acquired DBI Group.
DBI is a provider of non-destructive testing, mechanical integrity inspections, pipeline integrity inspections, and heat treating services. The company, led by CEO Jeff Hilfiker, was founded in 1992 and is headquartered in Lenexa, Kansas.
The combined DBI and ERI will be led by Nathan Vander Griend, the current president and CEO of ERI.
“DBI’s great industry reputation, top-notch team, blue-chip client roster, and safety record make them a great addition to ERI,” said Mr. Vander Griend. “Furthermore, we believe that this integration will lead to significant business growth, providing opportunities for the members of the team to grow professionally, for our combined clients to have access to a more diverse suite of service offerings, and for our shareholders’ value to increase.”
ERI Solutions provides non-destructive testing, safety, industrial hygiene, environmental, and insurance services. The company’s services, the majority of which are federally mandated, allow its more than 200 customers to mitigate business risks and maintain compliance with regulations. ERI’s customers are active in the biofuels, agribusiness, manufacturing, milling, petrochemical, construction, and distribution sectors. The company was founded in 2007 and is headquartered near Wichita in Colwich, Kansas.
“With this combination, ERI and DBI will serve a broad base of energy and infrastructure customers across the US, playing a critical role in mitigating business and regulatory compliance risk,” said Brad Johnson, a vice president at Spire. “As a single company, ERI and DBI will be able to provide comprehensive service offerings to customers across the country. Spire is excited by the growth prospects of the combined company and looks forward to working closely with management.”
Bridgepoint Investment Banking was the financial advisor to DBI. “Our team ran a great process during an extremely difficult time dealing with COVID-19 and we were able to deliver a terrific outcome for DBI’s shareholders,” said Mike Anderson, a managing director at Bridgepoint. “It is a pleasure to help partner another Kansas City-based business with a capital provider that brings both capital and experience to help them take their business to the next level.”
New York City-based Spire invests from $15 million to $50 million in companies with revenues of at least $10 million and EBITDA of at least $3 million. Sectors of interest include technology-enabled business services, media, communications, and education.
Private Equity Professional | August 11, 2020