Infra Build Holdings Completes Addition of Second Platform - Hypower, LLC

MIAMI, May 12, 2022 /PRNewswire/ -- Infra Build Holdings, LLC ("IBH"), an SMC Infrastructure Partners ("SMC") company, has partnered with management to recapitalize Fort Lauderdale, FL-based Hypower, LLC ("Hypower"), a critical infrastructure electrical contractor focused primarily on serving owners and operators of aviation, electrification, energy transition, telecom, and transportation assets. The transaction closed on April 8^th, 2022. Post-closing, Hypower CEO Bernard Paul-Hus will continue to lead the principal operations of Hypower.

SMC, IBH, and Hypower management were supported by capital contributions from debt funds managed by IFM Investors ("IFM"), as part of a $1.2 billion dual-purpose financing partnership. The financing partnership currently consists of (i) acquisition financing provided by IFM and equity provided by SMC and IBH, together totaling over $150 million, as well as $1 billion of envisioned support from IFM for design-build-finance ("DBF") or otherwise related privately financed infrastructure projects promoted, constructed, and maintained by IBH or its subsidiaries.

IBH also recently recapitalized Miami, FL-based infrastructure paving contractor General Asphalt ("GA"), partnering with management on a similar basis. General Asphalt and Hypower are recognized leaders in specialized infrastructure construction and maintenance in South Florida and beyond. The two companies have partnered together on key infrastructure projects for over 30 years, with a specific focus on the aviation surface subsector.

Hypower CEO Bernard Paul-Hus commented, "In recent years, we have periodically considered looking for a strategic partner to support Hypower in expanding to a new level of scale. SMC and IBH together presented the integrated blend of construction experience, infrastructure asset knowledge, industry relationships, and overall credibility for which we had been searching. SMC's vision for IBH, highly attractive capital partnership with IFM, and ability to transact seamlessly and without disrupting Hypower's surety provider proved to be exactly as advertised. The combination of Lauro Bravar's experience and the IBH management team's track record with Hypower's decades-long commercial relationship with General Asphalt only further enhanced our desire to become part of the IBH group. We are enthusiastic about working with SMC, IBH, GA, and future IBH platforms to redefine specialized infrastructure construction and maintenance in South Florida and across the United States."

SMC Chairman & CEO Aaron Richardson said, "We are incredibly excited to partner with the Paul-Hus family and IFM to support the next phase of growth and strategic expansion for Hypower. We are steadfast believers in Bernard and the Hypower management team's ability to accelerate growth while maintaining their track record of outstanding performance. Hypower's diverse set of specialized and complementary capabilities across fast-growing critical infrastructure end markets, especially related to energy transition and electrification projects, will serve as key drivers for IBH's long-term value creation plan."

Lauro Bravar, CEO of IBH remarked, "Hypower represents a highly compelling addition for IBH. While Hypower will remain active in the sectors where it has been traditionally present, IBH intends to support Hypower's pursuit of an expanded range of opportunities around larger, more complex infrastructure projects via alternative delivery methodologies, like Design & Build, Progressive D&B, and Design-Build-Finance with the support of IFM. We are enthusiastic about the future for IBH and for all our employees and business partners." 

"IFM is delighted to work with SMC, IBH, and Hypower to support their growth and increase private infrastructure investment across the growing IBH footprint. Energy transition and sustainability are key focus sectors for IFM and we look forward to working on future acquisition financings and DBF opportunities with the team," said Matt Wade, Executive Director of Debt Investments for North America at IFM Investors.  

Hypower was exclusively advised by CCG Advisors, an Atlanta, GA-based investment banking firm, and received legal counsel from Greenberg Traurig, P.A. IFM was counseled by Baker Botts L.L.P. SMC and IBH were represented by Gibson Dunn & Crutcher LLP and Troutman Pepper Hamilton Sanders LLP.

Hypower, based in Fort Lauderdale, FL, having completed projects in 38 states and with over 400 employees, is a best-in-class critical infrastructure electrical contractor serving a diverse base of leading institutional public and private customers across the aviation, electrification, energy transition, telecom, and transportation markets. Hypower is the nation's largest provider of installation and maintenance services for airfield lighting and electrical systems, as well as a market leader in the digital infrastructure, solar, and railroad electrical construction sectors. Hypower is a recognized multidisciplinary expert across its suite of core competencies on a national scale.

IBH is a Miami, FL-based diversified infrastructure construction and heavy maintenance platform, established in 2021 by SMC Infrastructure Partners. IBH is led by CEO Lauro Bravar, formerly CEO of OHL USA, Inc. Today, IBH represents more than $250M in consolidated revenue and nearly 900 employees. IBH anticipates approaching the $500 million revenue threshold on a run-rate basis by year-end 2022, supported by near-term organic and high-visibility acquisitive growth initiatives.

SMC Infrastructure Partners, founded in 2021 and headquartered in Miami, FL with offices in New York, NY and Columbus, OH, is a strategic acquirer, developer, and long-term owner-operator of mission-critical infrastructure support businesses. SMC's world-class specialized team of over 20 professionals together possess over $250 billion and 400 years of combined experience, blending extensive technical infrastructure asset knowledge, deep corporate M&A and strategy capability, volumes of infrastructure finance and development experience, and a lengthy operational management track record within infrastructure construction and maintenance, enabling it to present a de-novo partnership and value creation proposition to founders and management teams.

IFM Investors is a global investment management firm and one of the largest infrastructure investors in the world. Established more than 25 years ago with the aim to protect and grow the long-term retirement savings of working people, IFM is owned by a group of Australian pension funds and manages approximately US$136 billion as of March 31^st, 2022.

For additional inquiries regarding IBH, please contact [email protected]. For additional inquiries regarding SMC Infrastructure Partners, please contact [email protected].

SOURCE SMC Infrastructure Partners