non-destructive testing

Spire Expands Testing Platform

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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

Clearview Capital Exits QualSpec

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Clearview Capital has sold its portfolio company QualSpec Group to Team, Inc. for $255 million in cash plus an additional payment of up to $10 million based on the achievement of certain financial targets for the 2015 calendar year.

QualSpec, acquired by Clearview Capital in 2008, is a provider of inspection and non-destructive testing services for industrial facilities including refineries and petrochemical plants.  QualSpec has annual revenues of approximately about $180 million and is expected to generate about $24 million of EBITDA in 2015.  QualSpec, with approximately 1000 employees, is based in Torrance, CA (www.qualspecgroup.com).

During Clearview Capital’s seven year ownership term QualSpec’s revenue and EBITDA more than tripled.  “Over the course of the past seven years QualSpec has grown organically and via acquisition from a regional provider of inspection services serving the Gulf Coast to a national player with broad capabilities including visual inspection, non-destructive testing, and other specialty services including rope access,” said Calvin Neider, co-Managing Partner of Clearview Capital. “We have worked intensively with the company to build the systems, capabilities and management structure that have allowed QualSpec to become one of the largest independent providers of these services to the petrochemical industry.”

“QualSpec is the sixth exit for our second fund and a transaction of which we are extremely proud,” said James Andersen, co-Managing Partner of Clearview Capital. “The investments made to professionalize the company, upgrade management and drive growth resulted in a compound annual EBITDA growth rate of more than 19% during the span of our ownership.”

Clearview Capital was founded in 1999 by James Andersen and Calvin Neider and is headquartered in Old Greenwich, CT with additional offices in Chicago and Los Angeles (www.ClearviewCap.com).

Team Inc. (NYSE: TISI) provides specialty industrial services including non-destructive evaluation and testing, radiographic testing, and ultrasonic testing. The company serves various heavy industries, which include petrochemical, refining, power, pipeline, steel, and pulp and paper industries, as well as municipalities, shipbuilding, original equipment manufacturers, distributors, and engineering and construction firms. The company was founded in 1973 and is headquartered southwest of Houston in Sugar Land, TX (www.teamindustrialservices.com).

Lazard Middle Market served as financial advisor to QualSpec.

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