engineering services

AEI Continues Belcan Build

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Belcan, a portfolio company of AE Industrial Partners since June 2015, has acquired Sitec Design and Sitec Recruitment (together “Sitec”).

Sitec is a provider of engineering services and technical recruitment services to aerospace, defense, nuclear, and industrial customers in the UK and Europe. Customers of the company include Airbus, BAE, Leonardo and Rolls-Royce. Sitec is headquartered near Bristol in Filton, UK (www.sitecgroup.com).

“Sitec has been a family-owned business since its founding in 1951 by Len Medlock, and we have spent many months looking for the right team to take over the reins and lead the company in its next stage of growth,” said David Medlock, chairman of Sitec. “The directors of Sitec believe we have found the perfect partner in Belcan, and we look forward to enhanced opportunities as we remain dedicated to providing our customers with first-class services.”

Belcan is a provider of engineering, supply chain, technical recruiting, and IT services to companies that operate in the aerospace, defense, automotive, industrial, and government sectors. The company is led by CEO Lance Kwasniewski and has more than 6,000 employees in 49 locations, including 26 engineering design centers and 23 technical services locations. Belcan is headquartered in Cincinnati (www.belcan.com).

“The acquisition of Sitec represents significant progress for Belcan’s global strategy, strengthening our international reach and bringing additional engineering capability and experience,” said Mr. Kwasniewski. “Sitec, in combination with our existing UK and European business, provides extended breadth and technical depth of resources to serve our growing global customer base.”

AEI invests in the aerospace & defense, power generation and specialty industrial sectors with a specific focus on technical manufacturing, distribution and supply chain management, MRO (maintenance, repair and overhaul) and industrial service-based businesses.  Typical company targets will have from $50 million to $500 million of revenue. The firm is headquartered in Boca Raton (www.aeroequity.com).

Lincoln International (www.lincolninternational.com) was the financial advisor to Sitec and PricewaterhouseCoopers (www.pwc.com) was the financial advisor to AEI.

© 2019 Private Equity Professional | February 4, 2019

DFW Invests in LRI

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DFW Capital Partners has made an investment in LRI Energy Solutions (LRI), a provider of engineering services to energy and water efficiency projects.

LRI services include design, engineering, project management, analysis and monitoring for energy efficiency projects primarily in the Federal and MUSH (Municipalities, Universities, Schools and Hospitals) markets. Since its founding in 1993, LRI has completed over 650 projects throughout the United States and internationally. The company is based in Annapolis (www.lrienergysolutions.com).

Arborview Capital first invested in LRI in November 2009. “Over the past seven years, LRI has had a strong partnership with Arborview Capital and experienced tremendous growth,” said Stephen Troese, Jr., CEO and Co-founder of LRI. “We are excited about adding a new strategic partner, DFW Capital Partners, and executing the next phase of our growth initiatives where we will continue to drive significant energy and water savings and efficiencies.”

DFW invests from $15 million to $50 million in lower middle-market service companies. Sectors of interest include healthcare and outsourced business and industrial support services.  The firm is headquartered in Teaneck, NJ, and has an additional office in Chevy Chase, MD (www.dfwcapital.com). Douglas Gilbert, Partner, led the transaction for DFW.

LRI is DFW’s first portfolio investment in its newest fund, DFW Capital Partners V, LP, which held its final closing in April 2016 with $360 million in aggregate commitments.

Arborview Capital is a growth equity firm that makes investments in companies across the energy efficiency, resource efficiency and sustainability sectors. The firm is based in Chevy Chase, MD (www.arborviewcapital.com).

© 2016 Private Equity Professional • 10-5-16

Fort Point Exits Engineering, Planning and Management

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Fort Point Capital has completed the sale of Engineering, Planning and Management, Inc. (EPM) to Onet North America, a subsidiary of Onet, an engineering and services company based in Marseille, France. Fort Point acquired EPM in July 2013.

EPM is a provider of engineering, consulting, probabilistic risk assessment, and fire protection services to the nuclear power industry and other commercial customers. The company was founded in 1980 and is headquartered west of Boston in Framingham, MA (www.epm-inc.com).

During its two plus years of ownership, Fort Point actively supported the company’s growth through the addition of senior staff including a chief financial officer and chief operating officer; developed and executed a plan to expand into adjacent end markets and new geographies; grew profitability and improved working capital management; and made investments in new software and services.

“EPM epitomizes our strategy of acquiring niche leaders and working with those management teams to significantly improve and transform their businesses from a qualitative and quantitative standpoint,” said Christina Pai, a Partner at Fort Point.

Fort Point Capital invests from $5 million to $25 million in service-oriented, lower middle-market companies across a range of sectors, including business services, healthcare, consumer, and software & information. Fort Point Capital is currently investing from FPC Small Cap Fund I. Since founding in 2010, Fort Point has completed nine transactions – five platform investments, two exits and two add-on acquisitions. The sale of EPM marks the second portfolio realization for Fort Point and first realization from FPC Small Cap Fund I.  The firm is based in Boston (www.fortpointcapital.com).

“With Fort Point’s support and encouragement, we leveraged our track record and market leadership position to introduce new software and service offerings, acquire new customers and expand into new markets and geographies,” said Robert Kalantari, CEO of EPM.

Houlihan Lokey (www.hl.com) served as financial advisor to EPM and Kirkland & Ellis (www.kirkland.com) provided legal counsel.

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-19-15

Castle Harlan Acquires Tensar from Arcapita

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Castle Harlan has acquired Tensar Corporation, a provider of specialty products and engineering services, from Arcapita which fist invested in Tensar in November 2005.

Tensar offers products and services that provide soil stabilization, earth retention, foundation support and erosion and sediment control. Customers include commercial, industrial and residential site developers, resource extractors, transportation authorities, coastal and waterway authorities, and waste management companies.  Tensar operates four subsidiaries: Tensar Earth Technologies, North American Green, Geopier Foundation Company and Tensar Polytechnologies. The company is headquartered in Atlanta (www.tensarcorporation.com).

“By inventing and bringing to market superior cost and technically performing soil and pavement stabilization solutions, Tensar Corporation, through its Tensar International Corporation, Geopier Foundation Company and Tensar North American Green business units have grown into a worldwide provider for key infrastructure markets, including transportation, commercial, residential, industrial and municipal properties, environmental, mining and well sites,” said Don Meltzer, president and CEO of Tensar Corporation.

Castle Harlan makes control investments in middle-market companies in North America, Europe and, together with CHAMP Private Equity, in Australia.  Since founding in 1987, the firm has completed 54 acquisitions with more than 43,000 employees and total transaction value in excess of $11 billion.  Castle Harlan has participated in eight private equity funds, five in the United States and three in Australia. Those funds totaled approximately $6 billion in capital commitments.  Castle Harlan is based in New York (www.castleharlan.com).

“Castle Harlan’s confidence in us is a testament to our market leadership and the company’s tremendous prospects for growth. This transaction brings with it in Castle Harlan a true partner who understands the value Tensar brings,” said Mr. Meltzer.

2014 PEPD • Private Equity’s Leading News Magazine • 7-10-14

Keystone Capital Exits Eagleton Engineering

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Keystone Capital has sold its portfolio company Eagleton Engineering to Jacobs Engineering Group.

Eagleton Engineering provides planning, design, and construction services for transportation systems and facilities used in natural gas and gas liquids, petrochemicals, carbon dioxide, other industrial gases and crude oil. Typical projects include pipelines, terminals, compressor and pump stations, oil and gas production and processing facilities, and slug catchers. The company has approximately 130 employees and is headquartered in Houston with an additional office in Denver (www.eagletoninc.com).

Keystone acquired Eagleton Engineering in December 2011 from Babcock International Group. During the course of its investment, Keystone and management recruited additional management, executed meaningful project activity, grew the business by almost 100%, and opened an office in Denver to service the Rocky Mountain region.

“Our partnership with Keystone was extremely successful and allowed us to grow the business significantly and operate with the entrepreneurial spirit,” said Eagleton CEO Duain Cagle.

Keystone Capital invests in middle market companies with EBITDAs of $3 million to $15 million that are market leaders in niche, mature industries. Sectors of interest include niche manufacturing, industrial technology, food products and packaging, healthcare products and services, business and professional services. Keystone Capital manages in excess of $200 million in investment capital and is based in Chicago (www.keystonecapital.com).

“Although we predict continued upside for Eagleton due to strong end market fundamentals in the oil and gas midstream infrastructure industry, Eagleton is strategic to the Jacobs organization and is expected to effectively supplement their aggressive growth plans,” said Scott Gwilliam, Managing Director, Keystone Capital. “It was a pleasure to work with Jacobs in this transaction, and we have no doubt that the company is in good hands. We wish our management team, employees and the Jacobs organization continued success in the future.”

Jacobs Engineering Group is an engineering, architecture, and construction firm with offices located around the world. The company has 60,000 employees and in 2013 had revenues of more than $11 billion. The company is headquartered in Pasadena, CA (www.jacobs.com).

The existing management team of Eagleton, including CEO Duain Cagle, will join Jacobs.

© 2014 PEPD • Private Equity’s Leading News Magazine • 2-14-14

CIVC Partners Acquires Eta Engineering Consultants

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EN Engineering, a portfolio company of CIVC Partners, has acquired Eta Engineering Consultants. CIVC acquired EN Engineering from Clearview Capital in May 2012.

Eta Engineering Consultants (EEC) is an engineering firm providing industrial, process safety management, automation and manufacturing, and power and instrumentation system services nationwide. The company serves the petroleum, chemical, coal, and natural gas markets. EEC has 100 full-time employees and is headquartered near Catlettsburg, KY, with additional offices in Cincinnati and Pittsburgh (www.eecpsc.com).

EN Engineering is an energy-focused professional services firm providing engineering, consulting, automation and integrity management services to the natural gas, liquid petroleum and related industrial markets. The company has 500 employees and is headquartered near Chicago in Warrenville, IL, with additional offices in Baltimore, Denver, and Kansas City (www.enengineering.com).

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 capital and is investing out of CIVC Partners Fund IV. The firm is based in Chicago (www.civc.com).

CIVC is actively seeking additional add-on acquisitions for EN Engineering. Contact John Compall at [email protected], or Chris Perry at [email protected].

© 2013 PEPD • Private Equity’s Leading News Magazine • 6-19-13