M&S Activity in the Industrial Services Sector is on the Rise
October 4, 2012 -Harris Williams & Co., a preeminent middle market investment bank focused on the advisory needs of clients worldwide, announces the sale of JV Industrial Companies, Ltd. (JVIC), a turnkey industrial services company that provides turnaround, maintenance, repair and related facility requirements solutions, to Zachry Holdings, Inc. JVIC was a portfolio company of The Stephens Group, LLC. Harris Williams & Co. acted as the exclusive advisor to JVIC. The transaction closed on September 26, 2012 and was led by Drew Spitzer, Brian Lucas, Matt White and Chris Burnham from Harris Williams & Co.’s Energy & Power (E&P) Group.
Over the last 18 months, there has been an uptick of deal activity within the industrial services sector. Since last July, Harris Williams & Co. has closed five transactions within the space, including the sale of Philadelphia Gear Corp. to The Timken Company, Grand Isle Shipyard (GIS) to NANA Development Corporation, Integrated Power Services to Odyssey Investment Partners, QualaWash Holdings, LLC to Roark Capital, and JVIC to Zachry Holdings, Inc.
“The industrial services sector is experiencing renewed growth evidenced by the recent uptick in M&A activity. We are seeing strong company performance and buyer interest across the industry driven by significant tailwinds in energy-driven end markets, including refinery, petrochemical, and chemical” said Drew Spitzer, managing director and co-head of Harris Williams & Co.’s E&P Group. Brian Lucas, director in the firm’s E&P Group, added “The combination of JVIC and Zachry provides a turnkey solution to the market, as the combined company will offer its customers a complementary suite of maintenance and construction services, strengthening its position as a leader in the industrial services sector.”
JVIC is a turnkey industrial services company that provides time and profit sensitive services, such as turnarounds, refurbishing, expanding and managing plant assets for the midstream and downstream energy complex and the industrial process plant community. The company, headquartered in Pasadena, TX, was founded in 1998 and currently employs, either directly or through contracts, more than 3,000 FTE and temporary craft workers.
The Stephens Group, LLC is a private, family-owned firm that invests its capital in private companies with exceptional management teams in growing industries. The principals of The Stephens Group have over 70 years of history in successfully investing in both minority and control positions across multiple industries. The Stephens Group, through its affiliates, has large positions in energy services, gas exploration and production, media, communications, consumer, manufacturing and other industries.
Zachry Holdings, Inc. is a privately held business engaged primarily in the engineering, construction and maintenance of large industrial projects and facilities in the U.S. Based in San Antonio, TX, the company participates in a wide range of services to the energy sector, including traditional and renewable power, petrochemical, refining, forest products and nuclear. Zachry has offices throughout the U.S. and safely employees more than 15,000 craft and professional staff.