Power Line Services Completes Strategic Acquisition of Snelson Companies and IPS Engineering
HOUSTON, March 30, 2012 /PRNewswire/ — Power Line Services (“PLS”), a portfolio company of private equity firm Energy Capital Partners, announced today the acquisition of Snelson Companies, Inc. (“Snelson”) and IPS Engineering, LLC (“IPSE”) from GFI Energy Group and other shareholders. Snelson and IPSE will be added to the PLS family of businesses and will further diversify its energy infrastructure construction and maintenance services capabilities, extend its operating footprint west of the Rockies and add pipeline construction to its suite of businesses. PLS believes the acquisition positions PLS as a leader in the North American energy transmission infrastructure market and will enable the company to take advantage of the positive long-term outlook for the pipeline and electric transmission industries.
Headquartered in Sedro-Woolley, Washington, Snelson builds and provides maintenance services for pipelines and related facilities and infrastructure in the oil and gas industry. The company offers a range of services, including pipeline and gas distribution, pipeline emergency response, utility and communications installation, pipe and vessel fabrication, storage tank relocation and general industrial construction. Snelson is licensed throughout the United States as a pipeline construction company and can mobilize personnel and equipment to locations across the country. Snelson also is a leading player in the fast growing natural gas pipeline system integrity services market. IPSE, headquartered in Tulsa, Oklahoma, has a diverse engineering staff fully experienced in the analysis, design, drafting/mapping, specification, procurement, construction, testing, and start-up/commissioning of pipelines, pump stations, compressor stations, meter stations, small process plants, and related facilities for both liquids and gases. IPSE provides turn-key Engineering, Procurement, and Construction service offerings for customers in the Midwest and the Marcellus region.
System integrity and pressure testing of existing gas pipeline networks is an increasingly sought after service across the U.S. in light of high profile catastrophic events over the past few years. New regulations and legislation at the State and Federal levels, such as the Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011 signed by President Obama on January 3, 2012, mandate greatly increased spending on system integrity of gas pipeline networks. In response, Snelson has been working with gas pipeline owners as they adopt and implement pipeline integrity management programs.
Mark Crowson, the CEO at PLS, and the senior management team at PLS will manage the overall group of pipeline and electric transmission and energy services companies. Following the acquisition, the existing management teams at Snelson and IPSE will continue to run those respective divisions and the existing operations management teams at PLS will continue to run the electric transmission and energy divisions. Brad Sitton, Snelson’s President, has over 24 years of operational experience in the energy industry, and will continue his responsibility for development and implementation of strategic plans as well as leading all aspects of the Snelson operations. Curt Simkin, the President of IPS Engineering / EPC, has over 30 years experience in executive management, project management, engineering, design and construction for the oil and gas industry. Curt will continue to provide leadership and strategic planning for IPSE.
“This strategic, financially compelling acquisition significantly expands the scale and scope of PLS’s existing electric and gas infrastructure operations to better meet the long-term infrastructure requirements of both the electric power and pipeline transmission industries,” said Mark Crowson, the company’s CEO. “IPSE, PLS and Snelson will now be able to provide competitive construction services in the gas and electric transmission market across a large portion of the U.S.,” he added.
About Power Line Services
PLS is a provider of electrical infrastructure construction, maintenance and inspection services to many of the nation’s largest utilities, regional cooperatives, renewable energy developers, commercial and industrial customers, and major oil and gas companies. PLS is a company started by Energy Capital Partners that prior to the acquisition of Snelson and IPSE had integrated three strong regional companies, Sun Electric, TESSCO, and AIR2. The company currently has 1000 employees and a fleet of over 1,200 pieces of specialized utility construction equipment and it is actively looking to expand its service offering and its geographic footprint. For more information, please visit its website at www.powerlinesinc.com.
About Energy Capital Partners
Energy Capital Partners is a private equity firm focused on investing in the power generation, midstream gas, renewable and electric transmission sectors of North America’s energy infrastructure. Energy Capital’s management has substantial experience leading successful energy companies and energy infrastructure investments. Energy Capital has offices in Short Hills, New Jersey and San Diego, California. For more information, visit www.ecpartners.com.
SOURCE Power Line Services