Clayton, Dubilier & Rice’s Acquisition of PowerTeam Services

Kirkland & Ellis LLP served as CD&R’s legal advisor in the transaction. Harris Williams acted as financial advisor and Debevoise & Plimpton acted as legal advisor to Kelso & Company on the transaction.

Clayton, Dubilier & Rice signed agreement under which CD&R-managed funds will acquire PowerTeam Services, LLC, a leading provider of maintenance and construction services to the U.S. utility industries. Terms of the transaction were not disclosed.

PowerTeam provides services to maintain, repair, upgrade, and install natural gas and electric distribution and transmission systems. These services are critical to maintaining the safety, reliability and integrity of aging gas and electric infrastructure. The company’s customer base includes leading regulated utilities in the southeastern and midwestern United States, which it serves through a network of 42 locations in 21 states with approximately 4,200 employees. Approximately two-thirds of PowerTeam’s revenue is related to natural gas systems, and more than 70% of revenue is derived from distribution infrastructure.

John Krenicki will serve as the Chairman of PowerTeam post-closing. Lewis “Lew” Hay III, Operating Advisor to CD&R funds and former Chairman, President, and CEO of NextEra Energy, will serve on the company’s Board of Directors.

PowerTeam Services is an industry-leading provider of electric and gas utility services with headquarters in Cary, North Carolina. The company has approximately 4,200 employees and a presence in 21 states with main operating offices located in Alabama, Georgia, Indiana, North Carolina, Texas, and Wisconsin. PowerTeam provides outsourced services for natural gas and electric transmission and distribution infrastructure throughout its geographic footprint. As an industry-leading service provider, PowerTeam has developed a track record for top-notch execution and safety and provides services to a broad group of utility customers who are leaders in their respective sectors.

Debevoise advised Kelso & Company on its sale of PowerTeam Services, LLC with Kevin M. Schmidt (Picture), Michael Bolotin, Jonathan F. Lewis, Scott Selinger, Douglas M. Hirn, David P. Iozzi, Thomas Lopez and Molly F. Stockley.

Involved fees earner: Kevin Schmidt – Debevoise & Plimpton; David Iozzi – Debevoise & Plimpton; Thomas Lopez – Debevoise & Plimpton; Molly Stockley – Debevoise & Plimpton; Michael Bolotin – Debevoise & Plimpton; Jonathan Lewis – Debevoise & Plimpton; Douglas Hirn – Debevoise & Plimpton; Scott Selinger – Debevoise & Plimpton;

Law Firms: Debevoise & Plimpton;

Clients: Kelso & Company;

Author: Ambrogio Visconti