T&D Solutions, which is backed by Huntsman Gay Global Capital, has acquired E&R Inc., a Kinston, N.C. provider of power line maintenance company in North Caroline. Financial terms were not disclosed. E&R’s management team will remain in place and retain a significant stake. T&D Solutions, of Alexandria, La., provides construction and maintenance services for electric transmission and distribution lines throughout the Gulf States. Huntsman Gay Global is a PE firm.
Allegiance Capital has facilitated T&D Solutions’ acquisition of E&R, Inc., a power line maintenance services company based in North Carolina. T&D Solutions is a portfolio company of Huntsman Gay Global Capital, a middle -market private equity firm. Texas based T&D Solutions, will acquire E&R, Inc., a client of Allegiance Capital, through a growth equity investment. The current management team will remain in place and retain a significant ownership stake in the company. Terms of the private transaction were not disclosed.
“The growth opportunities in transmission and distribution continue to drive investor interest in that space,” said Ron Blagg, Allegiance Capital Vice President. “We see this only increasing in the United States for the next several years as the aging electric grid and government-enforced reliability and safety standards continue to create need for expert maintenance services.”
Allegiance Capital has created a specialized practice dedicated to energy infrastructure with a focus on transmission and distribution. The firm is currently involved in several engagements in the transmission and distribution space, including three wind farms with cumulative generating capacity of more than 650 megawatts. Earlier this year Allegiance Capital facilitated Huntsman Gay’s strategic investment in T&D Solutions, a power line maintenance services company serving the southern United States.
The investment by Huntsman Gay Global Capital will enable T&D Solutions and E&R, Inc. to capture more of the outsourced services market as utilities increasingly seek experienced, reputable partners.
About Allegiance Capital
Allegiance Capital Corporation is a full-service investment banking firm specializing in the middle market (companies with revenue from $20 million to $500 million). Headquartered in Dallas, the firm has offices in Chicago, Dallas, Madrid, Minneapolis/St. Paul, New York, Seattle, and Shanghai. Through its global network, Allegiance Capital assists companies in every aspect of selling and financing a business, including debt restructuring, mezzanine financing, executing leveraged buyouts, strategic partnering, consulting and other related services. Its Special Situations group handles financial restructuring and distressed mergers and acquisitions. For more information, refer to the company website, www.allcapcorp.com, and Facebook page, http://www.facebook.com/allegiancecapital. Subscribe to the Capital Ideas blog by visiting: www.allcapcorp.com/blog .
SOURCE Allegiance Capital Corporation