Funds managed by Clayton, Dubilier & Rice (CD&R) are to acquire PowerTeam Services (PowerTeam), a provider of maintenance and construction services to the US utility industries.
Terms of the transaction have not been disclosed.
PowerTeam provides services to maintain, repair, upgrade, and install natural gas and electric distribution and transmission systems. These services are critical to maintaining the safety, reliability and integrity of ageing gas and electric infrastructure. The company’s customer base includes leading regulated utilities in the southeastern and midwestern United States, which it serves through a network of 42 locations in 21 states with approximately 4,200 employees. Approximately two-thirds of PowerTeam’s revenue is related to natural gas systems, and more than 70 per cent of revenue is derived from distribution infrastructure.
“PowerTeam’s demonstrated ability to deliver safe, reliable, and high-quality services to its utility customers provides a strong platform to accelerate growth and expand the company’s geographic footprint,” says CD&R Partner Nate Sleeper. “We look forward to supporting the business through its next phase of growth, while continuing to provide customers with exceptional service levels.”
“The company has a very promising future,” says John Krenicki, CD&R Operating Partner, former Vice Chairman of General Electric and President and CEO of GE Energy. “PowerTeam’s management has built a strong market position and we share their vision for the future, which we believe will create rewarding career opportunities for the company’s more than 4,000 talented employees.”
“PowerTeam’s outlook is supported by favourable secular tailwinds, which we believe have plenty of runway,” said CD&R Principal Andrew Campelli. “Together with a targeted acquisition strategy, PowerTeam can continue to build its capabilities and reach to even better serve its existing and potential customers.”
John Krenicki will serve as the Chairman of PowerTeam post-closing. Lewis “Lew” Hay III, Operating Advisor to CD&R funds and former Chairman, President, and CEO of NextEra Energy, will serve on the company’s Board of Directors.
Kirkland & Ellis LLP served as CD&R’s legal advisor in the transaction. Harris Williams acted as financial advisor and Debevoise & Plimpton acted as legal advisor to PowerTeam on the transaction.