Upcoming Events | POWER-GEN International
POWER-GEN International is a 30-year-strong power generation event with diverse content for all forms of energy. The topics and trends focus on technology, innovation and policy advancements – unmatched insight for the future of the energy spectrum and mix. POWER-GEN International will be held December 4 - 6, 2018 at the Orange County Convention Center in Orlando, FL. Reach out to us if you plan to attend.
Industry | Select Recent M&A Activity
- M&A: GrayWolf Industrial, a specialty maintenance, repair, and installation service provider, is being acquired by DBM Global, an operating subsidiary of HC2 Holdings. GrayWolf Industrial is portfolio company of Charlesbank. Harris Williams served as the exclusive financial advisor to GrayWolf Industrial.
- M&A: Montrose Environmental Group, a leading provider of air quality, environmental laboratory, and engineering and regulatory compliance services, is being acquired by Oaktree Capital Management.
- M&A: Ulterra Drilling Technologies, a leading manufacturer of drill bits and downhole tools for the oil and gas industry, is being acquired by Blackstone Energy Partners. Ulterra Drilling Technologies is a portfolio company of American Securities.
- M&A: Weatherford International’s Laboratory Services Business, a leading provider of laboratory services and geological analysis to the oil and gas industry, is being acquired by CSL Capital Management.
- M&A: Site Resources, a leading provider logistics, maintenance, and repair services to the telecommunications and power utility sectors is being acquired by Qualtek, a portfolio company of Brightstar Capital Partners.
- M&A: EnerMech, a U.K.-based provider of mechanical engineering products and services, is being acquired by The Carlyle Group. EnerMech is a portfolio company of Lime Rock Partners.
Public Markets | Key Trading Statistics1
What We’re Reading
Testing, Inspection, & Certification | The Value of Independent Electrical Testing
“The field tests performed by an independent third-party testing company verify that the equipment, after it has left the factory and after installation, has not been damaged, is correctly installed, and performs as the factory and design engineer intended that it should. This field test data assists electrical inspection authorities in determining that the equipment is suitable for service, and assures the owner that they received the goods and services as intended. Also, not to be overlooked is the fact that the electrical equipment is deemed safe for energization and continued use. Today, there are complex systems from different disciplines and vendors, all of which could be installed as an addition to an existing system that might include components from manufacturers that no longer exist or are part of a mergers and acquisitions scenario. All these variables affect the how electrical power systems are designed, built, and installed, and support the need for a well-rounded and vendor-neutral service provider: the independent electrical testing entity.”
Oil & Gas | Frustrated Investors Want Frackers to Consolidate
“Investors have begun pushing companies in the shale sector, populated with many small and midsize firms, to pursue purchases or combinations, arguing that greater scale will help them turn profits. Companies that are big enough to drill giant wells, finance new pipelines and lock up equipment and other needs in long-term contracts have a strong advantage over those that cannot, some analysts say. Some frustrated investors see consolidation as a clear solution that many top executives won’t consider for reasons of ego or CEO pay. Annual compensation for some shale executives can top $10 million or more, and their equity stakes sometimes represent less than three years’ compensation, making the value of the job greater than any share price uplift from a merger. Those incentives may be setting them up to avoid merger discussions that are in the best interests of shareholders.”
Infrastructure | Investment in Infrastructure is Booming
“Private-equity firms are on track to raise a record amount for infrastructure investing in 2018, as money managers bet on the growing need to upgrade and expand the world’s railroads, natural-gas pipelines and data centers. The firms collectively raised $68.2 billion in the first three quarters of the year, up 18% over the same period in 2017 and already surpassing the $66.2 billion they amassed in all of 2016, according to data from Preqin. Leading the charge are KKR & Co., Stonepeak Infrastructure Partners and I Squared Capital, which each raised a roughly $7 billion investment vehicle this year. The numbers are set to swell even more as the total doesn’t include the $5 billion raised so far by Blackstone Group LP in the initial phase of its planned $40 billion infrastructure fund. Meanwhile, two infrastructure powerhouses, Global Infrastructure Partners and Brookfield Infrastructure Partners, which raised $15.8 billion and $14 billion funds, respectively, in 2016, are already targeting new pools of roughly $20 billion each.”
Oil & Gas | $32B Worth of Oil, Gas M&A Deals in 3Q Breaks Record
“U.S. oil and gas M&A activity soared in the 3Q to $32 billion, a 250 percent increase from $9.1 billion in 2Q, according to new data from Drillinginfo, which provides software and data analytic services to the energy industry. Third quarter numbers reflect big upstream deals as 3Q M&A activity broke all quarterly records dating back to as far back as 4Q 2012. It’s also 76 percent above the quarterly average of $18.3 billion dating back to 2009. Industry experts expect U.S. M&A activity to continue at a heightened level with record well results across the U.S. shales as it continues to de-risk acreage positions and advance technology. Furthermore, shale basin leaders are being rewarded for mastering scale, efficiency and technology. This sets the stage for additional mergers that not only checks all the accretive boxes for the buyer, but also provides sellers upside by joining forces with these leaders.”
Energy Efficiency | States Spent $400M More Last Year on Energy Efficiency
“States are ramping up efforts to grow energy efficiency — the nation's third-largest electricity resource, according to ACEEE — with greater spending and a broad array of strategies. An increasing number of states are considering zero-energy construction, or codes that would require buildings to produce as much power as they use. New homes and commercial buildings in California will need to be net zero-energy by 2020 and 2030, respectively. And ACEEE said Vermont, Rhode Island, Oregon, Washington, the District of Columbia and Massachusetts have all incorporated net zero-energy construction into long-range plans. The report also highlights the range of solutions being considered. Many of the leaders, for instance, also have grid modernization or utility transformation initiatives in place. California and Vermont were highlighted for setting appliance standards, at a time when the federal government is pulling back on those requirements. And six states have set up green banks to allow for innovative financing solutions.”
Recent M&A Transactions1,2
Public Markets Overview
Energy Equipment and Services1
Power Equipment and Services1
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.
- Oil & Gas Equipment and Services
- Coal Products and Services
- Power Products and Technology
- Electric and Natural Gas
- Transmission and Distribution
- Energy Efficiency and Clean Technology
- Renewable Energy Services and Equipment
- Industrial and Infrastructure Services
- Engineering and Construction
- Environmental Services
3. Baker Hughes
4. U.S. Department of Commerce
5. American Institute of Architects
6. Dodge Data & Analytics
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