Secondary Buyout • Construction

Kelso Acquires Artera Services

On May 6, 2013, private equity firm Kelso acquired construction company Artera Services from CIVC Partners and True North Equity

Acquisition Context
  • This is Kelso’s 2nd transaction in the Construction sector.
  • This is Kelso’s 41st transaction in the United States.
  • This is Kelso’s 7th transaction in Georgia.
Investment Fate
  • Artera Services was sold to a consortium of financial buyers in 2018.

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M&A Deal Summary

Date May 6, 2013
Target Artera Services
Sector Construction
Buyer(s) Kelso
Sellers(s) CIVC Partners
True North Equity
Deal Type Secondary Buyout
Advisor(s) Harris Williams (Financial)
Kirkland & Ellis (Legal)

Target Company

Artera Services

Atlanta, Georgia, United States
Artera Services is a provider of integrated infrastructure services to natural gas and electric industries across 34 states. Artera delivers maintenance and construction services to energy utilities, infrastructure companies, municipalities, and cooperatives across America. Artera Services was founded in 2012 and is based in Atlanta, Georgia.
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Buyer Overview 1

Buyer

Kelso

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1971
PE ASSETS 15.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Kelso & Company is a private equity and investment management firm that seeks control investments in middle-market companies operating primarily throughout the US. Sectors of interest include manufacturing, communications, media, distribution, service, consumer products, retail, healthcare, transportation, logistics, textiles, & apparel, chemicals, and energy. Kelso looks to align 'management's interest with those of investors' when considering opportunities. Kelso & Company was formed in 1971 and is based in New York City.


Deal Context for Buyer #
Overall 49 of 81
Sector: Construction 2 of 2
Type: Secondary Buyout 7 of 22
State: Georgia 7 of 10
Country: United States 41 of 70
Year: 2013 2 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2013-03-22 Eacom

Montreal, Quebec, Canada

Eacom is a manufacturer, marketer, and distributor of lumber, wood chips, and wood-based value-added products, and the management of forest resources. Eacom owns eight sawmills, all located in Eastern Canada, and related tenures. Eacom was formed in 2008 and is based in Montreal, Quebec.

Buy $218M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2013-05-07 Power Holdings

Alexandria, Louisiana, United States

Power Holdings (T&D Solutions) is a provider of construction and maintenance services for electric transmission and distribution lines throughout the Southwest, Central South, Midwest, and Eastern United States.

Sell -

Seller Profiles 2

SELLER

CIVC Partners

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1970
PE ASSETS 2.0B USD
Size Large
Type Sector Agnostic
DESCRIPTION

CIVC Partners is a private equity firm that provides buyout and growth capital to middle-market businesses located in the US and Canada. CIVC invests in companies generating sales of $40 - $300 million with an EBITDA of $5 to $30 million. Sectors of interest include Business Services, Information Services, Facility Services, Insurance Services, Transportation & Logistics, Tech-enabled Services, BPO, SaaS, Compliance Services, Corporate Training, IT Services, and Utility Services. The firm invests in the range of $20 - $100 million per transaction. CIVC prefers to be the lead equity sponsor and will consider both majority and minority investment situations. CIVC Partners was formed in 1970 and is based in Chicago, Illinois.


Deal Context for Seller #
Overall 30 of 49
Sector: Construction 1 of 1
Type: Secondary Buyout 11 of 20
State: Georgia 2 of 2
Country: United States 30 of 48
Year: 2013 2 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2013-02-20 GWC Warranty

Wilkes-Barre, Pennsylvania, United States

GWC Warranty is a provider of vehicle service contracts and related finance and insurance products sold through automotive dealers. GWC provides sales and marketing claims administration, and insurance for its customers. GWC Warranty was founded in 1995 and is based in Wilkes-Barre, Pennsylvania.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2013-10-08 EPIC Technologies

El Paso, Texas, United States

EPIC Technologies, LLC is a rapidly growing provider of electronic manufacturing services (EMS), supplying printed circuit board assemblies (PCBAs) and related components to major electronic product manufacturers.

Sell -
SELLER

True North Equity

Birmingham, Michigan, United Kingdom

Category Private Equity Firm
Founded 2008
Size Small
Type Sector Focused
DESCRIPTION

True North Equity is a private equity firm focused on control investments in energy services companies. True North seeks medium-sized companies located throughout the US and Canada with $5 to $50 million of EBITDA. The Firm's specific area of interest is companies involved in cleaning, maintenance, repair, or other services in support of refineries, petrochemical and power plants, and oil and gas production. True North prefers to invest in 'healthy' businesses, but will consider select underperforming situations. True North Equity is based in Birmingham, Michigan.


Deal Context for Seller #
Overall 1 of 3
Sector: Construction 1 of 2
Type: Secondary Buyout 1 of 1
State: Georgia 1 of 1
Country: United States 1 of 3
Year: 2013 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2010-07-16 KS Energy Services

New Berlin, Wisconsin, United States

KS Energy Services LLC is a energy infrastructure builder focused on providing gas distribution system and pipeline construction, underground electric, sewer camera inspection, and telecommunication construction services. KS Energy Services is based in New Berlin, Wisconsin.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-03-03 IFS Group

Birmingham, Michigan, United States

IFS Group is a holding company that provides non-discretionary industrial and field services supporting power generation and process industries.

Buy -