Summary

Industry | Select Recent M&A Activity

  • M&A: Old Line Environmental, a leading provider of industrial non-hazardous residuals management, food and yard waste composting, and wet waste separation services has been acquired by Synagro Technologies. Synagro Technologies is a portfolio company of EQT Partners.

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  • M&A: Power Performance Industries, a leading provider of maintenance and repair services for industrial generators and backup power solutions has been acquired by GenServe. Power Performance Industries was previously a subsidiary of Transportation Technology. GenServe is a portfolio company of GenNx360 Capital.

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  • M&A: Sustainable Solutions, a leading provider of recycling, waste, and sustainability programs has been acquired by Recycling and Waste Solutions. Recycling and Waster Solutions is a portfolio company of Atar Capital.           

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  • M&A: K2 Partners, a leading provider of powder coating and electroplating services to customers in the Midwest and Southeast has been acquired by AZZ.

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  • M&A: Nesco, a leading provider of specialty rental equipment to the electric utility, telecom and rail end-markets has merged with Capitol Investment Corp. IV. Nesco was previously a portfolio company of Energy Capital Partners.

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  • M&A: Jasper Oil, a leading fuel and lubricants distributor with a focus on the mining industry has been acquired by Reladyne. Reladyne is a portfolio company of Audax Private Equity.

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  • M&A: Epic Lift Systems, a leading provider of plunger lift, gas lift and complementary compression solutions has been acquired by Tally Energy Services. Tally Energy Services is a portfolio company of RedBird Capital Partners.

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Public Markets | Key Trading Statistics1

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What We’re Reading

Oil & Gas | Why Oil, Gas Companies Will Invest in Mobile in 2019

“Mobility is the cornerstone of field worker efficiency. A new suite of technology driven by connectivity is revolutionizing mobility in the oil and gas sector. Mobility technology is at the forefront of this change and is set to attract huge investment from the oil and gas sector in 2019. Mobile devices that offer access to analyzed data from vast oilfield sensor networks and SCADA systems, allow operators to see which wells need most attention to avoid dips in production. When combined with artificial intelligence (AI), a fleet of field workers can be guided through the oilfield using the most logical route according to real-time field data and the location of other workers. Mobility technology is already in the hands of every oil and gas worker but it is not utilized enough in their workplace. Ambitious oil and gas producers have targeted mobility as a critical investment for 2019 within a suite of technology that will drive the most successful companies into the data age. Oil and gas producers without mobility won’t be going anywhere.”

Rigzone

Utilities | The Once-in-a-Generation Opportunity to Change the U.S. Electrical Grid

“We now face a once-in-a-generation opportunity to transform the U.S. power grid. Renewable generation has accelerated down cost curves to become competitive with thermal power on an unsubsidized basis. Fuel-less resources, including wind and solar generation, are the most rational replacement source — not only because they do not emit greenhouse gas emissions, but also because they are becoming the cheapest form of electric generation. When paired with the capabilities of grid-connected energy storage, these resources are capable of providing the same level of service as thermal plants, but at a fraction of the price and without associated emissions.  According to Lazard's most recent Levelized Cost of Energy Analysis, the unsubsidized, levelized cost of wind and utility-scale solar resources have dropped to $29 and $36/MWh, respectively, compared to $41/MWh (natural gas) and $60/MWh (coal). Independent power producers have the lion's share of the experience with developing, deploying and operating emission-free technologies — hard-won experience gained over a two decade period in which most U.S. utilities were resisting change rather than exploring it.”

Utility Dive

Testing & Inspection | Reduce Electrical Danger with Infrared Technology

“All objects emit infrared (IR) energy, known as a heat signature. IR tools detect and measure that energy. Using IR technology for troubleshooting and maintenance provides tremendous advantages across many industrial, commercial, and residential applications. One of the biggest advantages of IR tools for electricians is that — because the devices are noncontact — you can inspect equipment while it’s running while keeping a safe distance. This expedites troubleshooting and reduces downtime. It also makes it practical to run more frequent maintenance checks and thereby increase the likelihood of detecting electrical problems at an early stage. You still must comply with all electrical measurement safety standards and wear proper personal protective equipment (PPE), but you save time by not having to perform lockout-tagout procedures before starting the inspection.”

EC&M

Oil & Gas | Oilfield Services Firm Using Airline Model to Win Back Investors

“Exploration and production (E&P) and oilfield services (OFS) companies are pushing for more capital discipline despite the fact that oil prices have rebounded in recent months. Panelists told BoyarMiller Energy Breakfast Forum attendees that capital discipline, decreased spending and consolidation will remain common themes in the oil and gas industry in the coming years. Although oil prices have been recovering since last December, U.S. onshore E&P spending is actually down year-on-year. Operators as well as OFS companies are expected to provide investors and shareholders a return through dividends and buy backs. In turn, OFS companies with debt are working to improve their balance sheets. The focus in OFS right now is free cash flow and that is what will attract investors and build sustainability. Panelists also pointed out that the OFS sector needs to embrace a “new normal” that may bear little resemblance to previous business models. The industry’s embrace of technology and Big Data notwithstanding, panelists conceded that success hinges on one key component, execution. For instance, at the Permian Basin there are multiple vendors operating onsite and activity must be coordinated to move massive pieces of equipment every day to achieve efficiency for the operator, and to do it safely. So technology is important but execution wins the game.”

Rigzone

Energy Efficiency | Blockchain is the Next Big Thing for Renewable Energy

“Blockchain has been touted as the next big technological advance - impacting everything from online transactions to e-government. But what does it mean for renewable energy? Many startups are already using blockchain as a tool to make energy grids more accessible and sustainable by promoting data-sharing in real time. The idea behind creating energy grids linked to blockchain is fairly simple: by giving consumers total control over where they source their energy as well as the information behind the production itself it drives competition and promotes sustainable energy. Consumers using a smart-grid that relies on blockchain will be able to compare their energy providers and buy directly from them. Should the blockchain-based grid take off and become more mainstream, it could open up a whole new market for clean energy. A smarter electricity grid giving consumers transparent energy choices could push for more integration of clean energy.”

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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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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