Arcline Investment Management has acquired and merged Electric Power Systems and North American Substation Services. The seller was Industrial Growth Partners. No financial terms were disclosed. The newly combined company will form a electric infrastructure service platform. Moving forward, Industrial Growth Partners will retain a minority stake in the combined company.
ST. LOUIS and ORLANDO, Fla., April 21, 2021 — Arcline Investment Management (“Arcline”), a growth-oriented private equity firm with $4.3 billion of cumulative capital commitments, today announced the creation of a leading electric infrastructure service platform formed by the acquisitions of Electric Power Systems (“EPS”) and North American Substation Services (“NASS”) from Industrial Growth Partners, which will retain a minority investment in the combined company.
Bringing together EPS and NASS creates a leader in protection and control engineering and services, high voltage apparatus testing, and critical substation equipment maintenance and installation services, to better serve utility, renewable energy, data center, and commercial customers. The recurring services provided by EPS and NASS are critical to the maintenance, upgrade, and operation of the nation’s electrical power grid, which is undergoing significant long-term investment to modernize an aged asset base, increase reliability and security, and incorporate significant renewable generation capacity.
Arcline commented, “Critical infrastructure services and energy transition are two of Arcline’s primary investment themes, and the combination of EPS and NASS brings together two industry leaders in these areas. We look forward to supporting these two great businesses as they perform the essential work of upgrading and maintaining the nation’s electrical infrastructure.”
Steve Reed, CEO of EPS, added, “We couldn’t be more excited to partner with both Arcline and NASS to establish the leading independent electric infrastructure service platform in North America. The combination of EPS and NASS brings together the market leaders in our respective service categories and allows us to better serve the entire breadth of our customers’ technical service needs.”
Daniel Niccum, President of NASS, commented, “The complementary nature of NASS and EPS’ service capabilities, customer relationships, and geographic footprint make this combination a win-win for both companies and, most importantly, for our customers. We look forward to partnering with EPS and Arcline to continue to grow the combined business.”
Harris Williams served as financial advisor and Latham & Watkins LLP served as legal counsel to Arcline in connection with the transaction.
About Arcline Investment Management Arcline is a growth-oriented private equity firm that seeks to invest in thriving middle market businesses with structurally recurring revenue streams in high value industries. Arcline’s differentiated investment strategy combines deep business model expertise, proactive thematic research, an unrelenting focus on the upside and a collaborative, management-first approach to value creation. The firm’s primary sectors of interest include energy transition, defense, aerospace, critical infrastructure services, industrial & biopharmaceutical technology, life sciences and specialty materials. Launched in 2019, Arcline currently has $4.3 billion in cumulative capital commitments. For more information about Arcline’s investment philosophy and values, visit www.arcline.com.