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May 2013

PowerTeam Services

The Transaction

On May 6, 2013, CIVC Partners, L.P. (“CIVC”) completed the sale of PowerTeam Services (“PowerTeam” or the “Company”) to Kelso & Company, which will merge PowerTeam with its existing portfolio company Power Holdings.

The Company

PowerTeam is a leading provider of outsourced infrastructure services to the gas and electric utility industry. The Company provides a comprehensive suite of services for the recurring repair, replacement, maintenance, and installation of natural gas and electric transmission and distribution infrastructure. PowerTeam provides services through three operating units: KS Energy Services, Southeast Connections, and Distribution Construction. Collectively, the Company has more than 1,400 employees across fourteen states from the upper Midwest to the Southeast.

Value-Add Approach

Through in-depth industry research, CIVC identified the outsourced infrastructure services sector as a highly attractive area for investment. In particular, CIVC identified several industry fundamentals driving a long-term secular spending trend. To capitalize on the opportunity, CIVC partnered with True North Equity, a Plymouth, Michigan based private equity firm, to acquire KS Energy Services (the first operating company within the PowerTeam platform) in June 2010 through a limited process.

Upon completing the transaction, CIVC leveraged its long history in business services and deep understanding of the outsourced infrastructure services sector to help management execute a comprehensive growth plan centered on expanding the Company’s geographic footprint and increasing market share. A key part of this growth strategy was to pursue acquisitions in order to build a super-regional infrastructure services provider. CIVC worked alongside PowerTeam’s best-in-class operating team to identify, acquire, and integrate three highly complementary acquisitions during CIVC’s ownership period. As a result of both organic and acquisition-based growth strategies, revenue and EBITDA more than quadrupled and headcount increased from approximately 300 employees in 2009 to over 1,400 by the end of 2012.

The successful sale of PowerTeam highlights CIVC’s ability to proactively identify fast-growing sectors and quickly capitalize on the opportunity by acquiring a high-performing platform company.

About CIVC Partners

CIVC Partners is a Chicago-based private equity firm established in 1970 that provides growth and buyout capital to middle-market companies and executives with a focus on the business services and financial services sectors. The current management team, which has worked together since 1989, has completed 54 platform transactions and dozens of add-on acquisitions. CIVC manages over $1.2 billion in private equity capital and currently invests from Fund IV. More information on CIVC Partners and its portfolio companies can be found at www.civc.com. For opportunities in the infrastructure services sector, please contact Chris Perry, John Compall, or J.D. Wright.

 
 
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