Summary

Industry | Select Recent M&A Activity

  • M&A: Design South Professionals, a South Carolina-based engineering consulting firm focused on the water, wastewater, water resources, stormwater, and architectural markets has been acquired by Ardurra. Ardurra is a portfolio company of RTC Partners.

Source

  • M&A: The Sextant Group, a leading provider of audiovisual, information and communications technology, acoustics consulting, and design services has been acquired by NV5 Global.

Source

  • M&A: XCEL NDT, a leading regional provider of non-destructive testing and pipeline integrity services to the oil and gas industry has been acquired by Crossbridge Compliance. Crossbridge Compliance is a portfolio company of Pine Tree Equity Partners.                       

 Source

  • M&A: Miller Environmental Group, a leading provider of emergency response, waste transportation/disposal, and marine services to industrial customers has been acquired by GenNx360 Capital Partners.

Source

  • M&A: Owen Group, a leading provider of buildings and infrastructure asset management and project compliance services for buildings and infrastructure projects has been acquired by Bureau Veritas.

Source

  • M&A: Sabre Industries, a leading provider of engineered structures and services for the electric transmission and wireless communication end markets is being acquired by The Jordan Company. Sabre Industries is a portfolio company of Kohlberg & Co.

Source

  • M&A: Daedalus Projects, a Massachusetts-based project and construction management firm has been acquired by CHA Consulting. CHA Consulting is a portfolio company of First Reserve Corporation.

Source

Public Markets | Key Trading Statistics1

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What We’re Reading

Oil & Gas | Technology is a Huge Driver of the U.S. Oil and Gas Boom

“In the world of oil and natural gas, engineers, geologists, and drilling and production departments tend to get the lion's share of the credit when good things happen, and most of the blame when they don't. These human resources remain indispensable to the success of any company, but the deployment of advancing technologies has played an ever-advancing role over time in enabling companies to maximize recoveries and profits. Unplanned equipment outages and the resulting loss of production cost companies billions of dollars every year. The ability to know weeks in advance when a pump is likely to break down enables the users to plan outages and make the needed repairs or replacements in the most efficient means possible, thus minimizing the loss of production. Another area of technology that is saving companies very significant money is remote monitoring. The cost-saving advantages to these sorts of remote-monitoring technologies are numerous: Reduced head count, less travel time, and lower vehicle maintenance are among the more obvious among them.”

Forbes

Utilities | Electrification Could Drive $600b in Transmission Spending by 2050

“The electrification of transportation, space heating and other sectors will lead to a large jump in electricity generation, ultimately requiring billions of dollars in transmission investments over the next several decades, according to analysis from Brattle Group. The transmission investment required to accommodate new renewable resources could reach $90 billion by 2030, according to the report released by WIRES Group, a trade association advocating for transmission investment. By 2050, the investment could grow to more than $600 billion. Electrification could increase U.S. annual energy demand by 5% to 15% by 2030, according to the analysis, and by up to 85% by 2050. The Brattle analysis points to rapid growth of electrified vehicles, along with heating, the data application sector and possibly even some industrial processes, as the main drivers for more transmission spending. Two primary factors will drive the need for this level of transmission investment, Brattle noted: connecting new renewables to the grid and keeping the system reliable while peak load increases.”

Utility Dive

Energy Efficiency | U.S. Energy Storage Broke Records in 2018

“The U.S. energy storage industry delivered record deployments in 2018, driven by a strong fourth quarter for utility-scale projects. But the new achievement for the young industry pales compared to what’s to come: an expected doubling in 2019, followed by a tripling in 2020. Such growth will propel energy storage out of pilot-scale projects and into grid planning conversations around the country. Battery installations for 2018 totaled 311 megawatts and 777 megawatt-hours, according to the new Energy Storage Monitor released by energy research firm Wood Mackenzie and the Energy Storage Association, with data from Q4 and 2018 as a whole. Smaller-scale batteries in residential and commercial sites had collectively outperformed the utility-scale segment for the previous four quarters in terms of megawatts deployed. Q4 broke that losing streak and made up for an otherwise low-output year for the large-format batteries."

Green Tech Media

Oil & Gas | From Texas to the World: Surge of U.S. Oil Exports on the Way

“What started as an American phenomenon is now being felt around the world as U.S. oil exports surge to levels unthinkable only a few years ago. The flow of crude will keep growing over the next few years with huge consequences for the oil industry, global politics and even whole economies. OPEC, for example, will face challenges keeping oil prices high, while Washington has a new, and potent, diplomatic weapon. American oil exports stepped up a gear last year, jumping more than 70 percent to just over 2 million barrels a day, according to government data. "That could double again over the next few years as people continue to invest in shale," said Russell Hardy, the head of top oil trader Vitol Group. Over the past four weeks, U.S. oil exports have averaged more than 3 million barrels a day --- more than what Middle East petro-state Kuwait sells. Oil traders and shale executives believe U.S. crude exports are set reach 5 million barrels a day by late 2020, up another 70 percent from current levels. If the U.S. hits that target, America will be exporting, on a gross basis, more crude than every country in OPEC except Saudi Arabia.”

Rigzone

Infrastructure | Infra Funds Ride into U.S. Shale Boom

“Getting oil and gas out of the ground is just the first step. Taking it to market – be it domestically, across the Mexican border, or overseas – requires pipelines, gathering and processing facilities, and export terminals. Tens of billions of dollars is needed annually just to keep up with the sector’s infra needs. And according to the latest research from Inframation – an Acuris publication – it is now US-based mega infrastructure funds that are picking up the bill. Recent years have seen a dramatic change in the way these midstream oil and gas infrastructure assets are owned and financed. Infrastructure funds, which look to park capital long-term and expect modest but stable returns, have emerged as some of the largest equity investors in the companies.”

Forbes

M&A Transactions

Recent M&A Transactions1,2

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Public Markets Overview

Energy Equipment and Services1

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Power Equipment and Services1

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Infrastructure Services1

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Industry Statistics

Commodity Prices1

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Trailing Twelve Months

(Indexed to 100%)

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Rig Counts3

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Construction Spend4

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Construction Indicators5,6

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ABI:  Derived from the AIA’s monthly Work-on-the-Boards survey, an index score above 50 denotes increased billing from prior month,
and vice versa.

DMI: 12-month indicator of future construction spending and demand for construction products / services.

Our Group

Harris Williams is a leading advisor to the energy, power, and infrastructure M&A market.  Our Energy, Power & Infrastructure Group has experience across a broad range of sectors, including services, products, and technologies that support or enhance energy and power infrastructure.

Select Recent Experience

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Public Comparables1

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1. FactSet
2. MergerMarket
3. Baker Hughes
4. U.S. Department of Commerce
5. American Institute of Architects
6. Dodge Data & Analytics

 

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