CIVC Partners, LP and True North Equity are pleased to announce the successful sale of PowerTeam Services, LLC (“PowerTeam” or the “Company”) to Kelso & Company, which will merge PowerTeam with its existing portfolio company Power Holdings.
PowerTeam is a leading provider of infrastructure services to the gas and electric utility industry. The Company provides a comprehensive suite of services for the recurring repair, replacement, maintenance, and installation of natural gas and electric transmission and distribution infrastructure. PowerTeam provides services through three operating units: KS Energy Services, Southeast Connections, and Distribution Construction. Collectively, the Company has more than 1,400 employees across fourteen states from the upper Midwest to the Southeast.
PowerTeam is led by a best-in-class operating team comprised of Jim Wigginton (CEO, PowerTeam), Jeff Wigginton (COO, PowerTeam), Dennis Klumb Jr. (CEO, KS Energy Services), Billy Campbell (CEO, Southeast Connections), and Fred Cripps (CEO, Distribution Construction). This team of highly talented executives worked closely with CIVC Partners and True North Equity to expand the Company’s geographic footprint, increase market share, and execute a highly accretive acquisition strategy.
Under CIVC’s ownership, revenue more than quadrupled driven by both organic and acquisition-based growth strategies. “PowerTeam’s impressive growth trajectory was supported by CIVC’s deep understanding of the industry and willingness to work alongside management to pursue various growth opportunities,” said Dennis Klumb Jr. A key part of the growth strategy has been to pursue acquisitions in order to build a super-regional infrastructure services provider. Jim Wigginton, CEO of PowerTeam, said that “our ability to acquire three complementary companies since 2011 was greatly enhanced by CIVC’s capital markets expertise and strategic guidance.”
“Dennis, Billy and Fred, along with their respective teams, have all done an exceptional job expanding relationships with existing customers and penetrating new customers through best-in-class service, an industry-leading safety culture, and a proven ability to execute complex projects on-time and on-budget, while at the same time supporting Jim and Jeff in their strategic acquisition and integration efforts” said Chris Perry, a partner at CIVC. The entire senior management team will remain with the Company and is committed to continuing to provide exceptional service to their customers.
The investment in PowerTeam represents another example of CIVC’s investment strategy of partnering with experienced management teams at market-leading companies in high growth business services industries. In particular, the PowerTeam investment builds on the firm’s experience in the outsourced utility and infrastructure services sector. In April of 2012, CIVC acquired EN Engineering, an energy-focused professional services firm providing engineering and consulting services to the natural gas, liquid petroleum and related industrial markets.
Harris Williams & Co. served as financial advisor and Kirkland & Ellis LLP served as legal advisor to PowerTeam.
About CIVC Partners, L.P.
CIVC Partners is a Chicago-based private equity firm established in 1970 that provides growth and buyout capital to middle-market companies and executives with a focus on the business services and financial services sectors. The current management team, which has worked together since 1989, has completed 54 platform transactions and dozens of add-on acquisitions. CIVC manages over $1.2 billion in private equity capital and currently invests from Fund IV. More information on CIVC Partners and its portfolio companies can be found atwww.civc.com.