Ridgemont Equity Partners, a middle market private equity investor, has made an investment in Sparus Holdings (Sparus), a provider of outsourced field and professional services for utility and industrial customers.
Financial terms of the transaction have not been disclosed.
Sparus and its subsidiaries, Southern Cross and The Spear Group, provide a complementary suite of field and professional services to customers across utility, industrial, and pharmaceutical end markets. The Company’s technology-enabled service offering includes: gas line inspection and leak detection, utility metering services, utility locate services, project management and delivery, owners’ representation, and other related professional services. Subsequent to Ridgemont’s acquisition of Sparus, the Company acquired Georgia-based OneVision Utility Services to expand its presence in the utility locate and damage prevention segment. Sparus is actively seeking to acquire other providers of field-based and professional utility services.
“Ridgemont’s Environmental, Power & Infrastructure team is focused on investing in differentiated outsourced services platforms that address the increasing needs of our country’s ageing infrastructure to operate in a safe, reliable, and compliant manner,” says Ryan Jack, Principal at Ridgemont. “Sparus’ core service offerings and technical talent are critical for its utility customers to maintain and upgrade their assets to ensure grid efficiency and reliability, facilitate the ongoing energy transition, and minimise environmental impacts. We are excited about the growth strategy we’ve developed with Sparus’ management team to expand the Company’s scope of services for existing and new customers.”
“The recent partnership with Ridgemont and subsequent acquisition of OneVision have augmented the growth trajectory for Sparus,” says Rich Summers, CEO of Sparus. “The addition of OneVision to our family of companies enhances our locate and damage prevention service offering and introduces incremental customers to our broader set of end-to-end utility services. Our core brands provide non-discretionary services that have potential application across a wide set of utility customers, and we are focused on continuing the momentum we have built through business line expansion and M&A.”
Oaktree Capital Management’s Middle-Market Finance Group, Citizens Bank, NA and PNC Erieview Capital provided financing for the transaction, and Citizens M&A Advisory acted as financial advisor to Ridgemont. Alston & Bird LLP provided legal services to Ridgemont. Harris Williams and Troutman Pepper Hamilton Sanders LLP served as financial advisor and legal counsel to Sparus, respectively.