First Reserve Acquires Utilities Services Associates, Inc. (USA)

GREENWICH, Conn. and RICHMOND, Va., Sept. 5, 2013 /PRNewswire/ -- First Reserve, the largest global private equity firm exclusively focused on energy, today announced that First Reserve Fund XII, in partnership with management and Michael Lennon, has agreed to acquire Utility Services Associates, Inc. ("USA"). USA consists of C.W. Wright Construction Company, Incorporated, Booth & Associates, Inc.,and Coastal Power & Electric, Inc.  Financial terms of the transaction were not disclosed.  The transaction is subject to certain regulatory approvals and is expected to close before year-end 2013.

USA has over 60 years of experience in the electrical utility services industry and provides a full range of critical maintenance, repair, rebuild and construction services for power transmission and distribution infrastructure across the Mid-Atlantic and Eastern regions of the United States.  USA also provides design, engineering and storm-related restoration services.  The executive management team will remain in place and will retain an equity interest in the company.

USA is exposed to positive, long-term macro trends in the electric transmission and distribution services industry, where growth in electricity demand has outpaced expansion of the electrical grid's capacity.  Aging infrastructure and historical under spending has also created a need for increased investment in the electrical grid.  As utilities continue to seek to outsource maintenance, repair and construction services to third-party providers in order to focus on their core operating activities, First Reserve believes Utility Services Associates is well-positioned to capitalize on these trends.

Jay Spruill, CEO of USA, commented, "First Reserve's investment is an important milestone for our company.  As an employee-owned company since 1999, we've grown to become a leading provider of transmission and distribution services in the Mid-Atlantic and Eastern regions.  We believe that the business model and operating expertise that we've successfully developed combined with the strategic vision and additional growth capital from First Reserve and Michael Lennon's experience building similar businesses in the past position us well for continued success in the space."

Jeff Quake, Managing Director of First Reserve, commented, "We are delighted to partner with the management team of USA and believe this platform is well-positioned for continued growth, both in terms of geography and service type."

Michael Lennon will join the USA management team.  Prior to joining USA, Mr. Lennon was the President, CEO & Co-founder of InfrastruX Group where he grew the company to become a leader in the utility transmission and distribution services industry. While there, he executed a growth strategy which included 17 acquisitions. 

Mr. Lennon added, "I am extremely excited about the prospect of working alongside the teams at USA and First Reserve to help USA take the next step in its development to become a national leader of utility industry solutions."

About First Reserve
First Reserve is the largest global private equity firm exclusively focused on energy. With 30 years of industry insight, investment expertise and operational excellence, the Firm has cultivated an enduring network of global relationships and raised more than USD $23 billion of aggregate capital since inception. Putting these to work, First Reserve has completed more than 450 transactions (including platform investments and add-on acquisitions) on six continents. Its portfolio companies operate in approximately 50 countries and span the energy spectrum from upstream oil and gas to midstream and downstream, including resources, equipment and services and infrastructure. First Reserve has offices in Greenwich, CT; Houston; London and Hong Kong. Visit us at www.firstreserve.com for more information.

About USA
USA is a leading turnkey provider of critical outsourced services (maintenance, rebuilds, upgrades and new construction) for power transmission, distribution and substation infrastructure in the Mid-Atlantic and Eastern U.S.  The company prides itself on a comprehensive service offering spanning utility grid design and engineering, as well as field services to a list of blue chip customers that the company has served for over 60 years.  USA consists of the C.W. Wright Construction Company, Incorporated; Booth & Associates, Inc.;and Coastal Power & Electric, Inc. 

CONTACT
Olivia Offner
Prosek Partners
(212) 279-3115 ext 233
[email protected]

SOURCE First Reserve