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First Reserve picks up transmission infrastructure company Utility Services Associates

6 Sep 2013

Energy-focused private equity firm First Reserve has acquired Utility Services Associates (USA), a service provider focused on transmission and distribution infrastructure across the Mid-Atlantic and Eastern US.

The investment, via the firm’s First Reserve Fund XII, was in partnership with management and includes the acquisition of C.W. Wright Construction Company, Incorporated, Booth & Associates and Coastal Power & Electric.

USA provides critical maintenance, repair, rebuild and construction services for power transmission and distribution infrastructure.

The executive management team will remain in place and will retain an equity interest in the company, it said.

USA is exposed to positive, long-term macro trends in the electric transmission and distribution services industry, where growth in electricity demand has outpaced expansion of the electrical grid’s capacity. Aging infrastructure and historical under spending has also created a need for increased investment in the electrical grid. As utilities continue to seek to outsource maintenance, repair and construction services to third-party providers in order to focus on their core operating activities, First Reserve said it Utility Services Associates is well-positioned to capitalize on these trends.

Jeff Quake, managing director of First Reserve, said, “We are delighted to partner with the management team of USA and believe this platform is well-positioned for continued growth, both in terms of geography and service type.”

As part of the deal, former CEO and co-founder of utility transmission and distribution services company InfrastruX Group Michael Lennon will join the USA management team.

In June AltAssets reported that the firm had expanded its base of asset managers with the addition of 30-year industry veteran Robert Hanna.

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