Industry | Select Recent M&A Activity
- M&A: Accumark, a leading provider of subsurface utility engineering, underground utility locating, and pipe inspection and cleaning services has been acquired by Hoffman Southwest. Hoffman Southwest is a portfolio company of ORIX Capital Partners.
- M&A: Northern Colorado Traffic Control, a leading provider of traffic control services has been acquired by Area Wide Protective. Area Wide Protective is a portfolio company of The Riverside Company.
- M&A: Bihun Commercial Services, a leading provider of installation, maintenance and replacement of building controls for energy management solutions has been acquired by Reedy Industries. Reedy Industries is a portfolio company of Audax Private Equity.
- M&A: Cobalt Environmental Solutions, a leading water infrastructure, logistics, and solutions provider for the oil and gas industry has been acquired by Bison Oilfield Services. Cobalt Environmental Solutions was previously a portfolio company of Blue Sage Capital.
- M&A: Target Emission Services, a leading provider of detection services for fugitive emission gases in the oil, gas, and petrochemical industries has been acquired by Montrose Environmental Group. Montrose Environmental Group is a portfolio company of GFI Oaktree Capital Management.
- M&A: TAS Environmental Services, a leading provider of industrial services, industrial cleaning, wastewater disposal, emergency and spill response services has been acquired by Blue Point Capital Partners. TAS Environmental Services was previously a portfolio company of TEAM Partners.
- M&A: Arcor Laser Services, a leading provider of advanced laser welding, laser cutting, machining, marking, and micro-drilling services has been acquired by Cadence. Cadence is a portfolio company of Kohlberg & Company.
Public Markets | Key Trading Statistics1
What We’re Reading
Oil & Gas | Predictive Maintenance Importance Increases
“The importance of predictive maintenance has increased in oil and gas operations against the backdrop of aging infrastructure and volatile crude pricing, according to data and analytics company GlobalData. The company, which released a report on predictive maintenance late last week, said that study revealed the adoption of predictive maintenance technologies is helping companies cut back on operational expenditure by optimizing maintenance scheduling and driving productivity. Predictive maintenance tools evaluate the condition of operational equipment and predict maintenance requirements in order to achieve “optimum performance” and prevent malfunction. The insights gained from predictive maintenance program enables decision makers to schedule maintenance activities without disrupting routine production operations. These insights can also be used to evaluate if any machinery or infrastructure requires a major overhaul on priority, and accordingly decide whether to use the available capital expenditure for new projects and expansion plans or divert it for the upgrading of existing facilities."
Utilities | How a Public Power Utility Forges the Path to a Digital Future
“The New York Power Authority (NYPA) wants to be "the world's first fully-digital utility," even with the drawbacks that come from being a public power entity. The utility industry is overwhemingly more analog than digital so the push to reinvent itself goes against the model it's had for a century. NYPA CIO Robert Piascik knows it and wants to change it. Utility CIOs more generally are naming digital initiatives, closely followed by operational excellence and cost optimization, as top priorities, according to Gartner. More than one-fifth of utility CIOs are in the scaling phase of digital maturity and 16% are refining their progress. And yet full blown integration is years away. Utility-specific IT requires assistance from regulators and policymakers to shape transformation in IT and goals. The progress NYPA makes is often dictated by state initiatives. IT alone doesn't include the tools used for generating data to drive the business. But there is progress. The utility industry has graduated from initiation to scaling. Digital transformation enables competitive relevancy for any company in any industry. The companies that aren't making headway in developments or partnerships will lose business to competitors.”
Engineering & Construction | Drones Gaining Ground on Construction Sites
“While the military remains unmanned technology's biggest customer, the latest AUVSI show in Chicago offered evidence that more contractors and subcontractors are finding increasing uses for it. This year, some 28% of the attendees identified themselves as most interested in construction applications, up from 21% last year, according to AUVSI. Even so, the actual percentage connected to our industry could conceivably be higher, since attendees also listed “mapping + surveying“ and “inspections” among the most common uses for drones in their respective businesses. Such applications include aerial inspections of infrastructure such as power plants, transmission towers, pipelines, and roads, etc. Unmanned systems also are used to monitor and measure heat loss, energy use, and the efficiency of entire building systems. Using 3D laser scanning, data today can be analyzed in enormous volume, with extreme detail, at extraordinary speed.”
Oil & Gas | American Oil Finds New Markets
“U.S. crude is reaching new destinations around the world after Chinese buying slowed amid concern that the growing trade dispute between the countries could result in a tax on American oil. America shipped 470.2 million barrels to 38 countries from October through March, compared with 359.3 million to 31 nations in the previous six months. The volumes increased even as shipments to China sank nearly 80%. Countries such as Canada and South Korea increased their purchases, while Chile took its first cargoes. China hasn’t turned completely away from the U.S., and the Asian nation’s overall imports hit a record in April. New refineries coming online and purchases for strategic stockpiles should keep demand strong. Last month, the Chinese government issued increased tariffs on some American goods and imposed new ones for others. But that didn’t include U.S. crude. By not imposing tariffs on U.S. crude, it leaves the option for crude imports from U.S. open at a time when a lot of international supply of crude remains constrained for various reasons.”
Infrastructure | Cure for the Home-Building Downturn? An Infrastructure Boom
“A substantial decline in U.S. home-building has been partly offset by a major increase in infrastructure investment at the state and local level. The downturn has been caused by a significant contraction in home-building over the past 12 months. Private residential construction has dropped by 11% since the peak last April. Macroeconomic Advisers now expects total government spending (mainly infrastructure and national defense) to contribute 0.8 percentage point to U.S. gross domestic product growth this quarter. This suggests the recent infrastructure boom can be explained by two types of places: those that have deferred investment for so long they are desperate to work through the backlog, and those that need to build capacity for additional residents. The big question for the economy is whether the trend of the past few months can continue. Public construction spending won’t continue to boost growth unless it continues to rise dramatically.”
Recent M&A Transactions1,2
Public Markets Overview
Energy Equipment and Services1
Power Equipment and Services1
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.
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.
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3. Baker Hughes
4. U.S. Department of Commerce
5. American Institute of Architects
6. Dodge Data & Analytics
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