Huntington Ingalls Industries agrees to buy PE-backed UPI

Huntington Ingalls Industries has agreed to acquire UniversalPegasus International, a portfolio company of KRG. No financial terms were disclosed for the transaction, which is expected to be completed this June. Headquartered in Houston, UPI is a provider of engineering and project management solutions to the energy sector.

PRESS RELEASE

DENVER–(BUSINESS WIRE)–UniversalPegasus International, Inc. (UPI), a KRG Capital Partners Fund III (KRG) portfolio company and a leading provider of engineering and project management services to the domestic and international energy markets, has entered into an agreement under which it will be acquired by Huntington Ingalls Industries (HII; NYSE:HII), subject to the satisfaction of certain customary closing conditions. HII designs, builds and maintains nuclear and non-nuclear ships for the U.S. Navy and Coast Guard and provides aftermarket services for military ships around the globe and also provides a wide variety of products and services for the commercial energy industry and other government customers, including the Department of Energy. The transaction is expected to close in June of 2014.
“KRG has been highly supportive of our growth plans at UPI, allowing us to recruit the necessary senior management and technical talent. I am grateful for the partnership they provided in helping our management team build UPI into an industry leader in our target markets,” remarked UPI CEO Philip Luna.
Charlie Gwirtsman, Managing Director at KRG, said, “Philip Luna has provided great leadership as the business continues to execute on its strategic growth plans and the business is extremely well positioned in the North American energy and infrastructure markets as a result. We wish Philip and our management partners from UPI all the best as they embark on their next chapter of growth with HII.”
About UPI: UPI has approximately 1,500 employees and has provided a broad range of engineering and project management services to the energy industry for over 50 years. They safely and reliably deliver project management, engineering, design, survey, inspection and construction management to customers in the domestic and international marketplaces. More information on UPI is available at www.universalpegasus.com.
About KRG: Founded in 1996, KRG is a Denver-based private equity firm with $4.3 billion of capital either deployed or available for future investment, which includes approximately $1 billion deployed since inception on behalf of equity co-investors. KRG specializes in acquiring majority interests in middle-market companies and growing them into significantly larger enterprises through the combination of internal growth and selective strategic add-on acquisitions. KRG Capital seeks investment opportunities where we can partner with existing management teams that are committed to building a best-in-class industry leading companies. Since inception, KRG has invested in 46 platform companies and has completed 152 add-on acquisitions for those platforms. More information on KRG is available at www.krgcapital.com.

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