SMG Advises on Infrastructure M&A Transaction That Will Benefit All Stakeholders
14 Nov, 2018, 08:43 ET
PASADENA, Calif., Nov. 14, 2018 /PRNewswire/ -- Environmental Systems Corporation of Austin, Texas (ESC) has acquired Spectrum Systems, Inc. of Pensacola, Florida (SSI). Strategic Mergers Group, Inc. (SMG) acted as financial advisor for ESC. The transaction price was not disclosed.
ESC supports industrial and utility plants with air emissions compliance requirements. It is the leading provider of Data Acquisition Systems (DAS) for Continuous Emissions Monitoring Systems (CEMS) used by US power plants and refineries. SSI is a full-service CEMS provider that delivers high-quality CEMS integration, maintenance, repairs, training, stack testing, and DAS software. Both companies provide exceptionally high levels of service to customers.
Jeff Rabensteine, President of ESC expects to grow the SSI service business by providing CEMS maintenance services to customers that currently do these tasks in-house. Customers will improve their productivity by outsourcing these specialized activities to SSI staff that are specially trained for CEMS maintenance. The business plan does not focus on grabbing market share from competitors. Amresh Jain, President of SMG remarked that transactions in the infrastructure industry must be a win-win for multiple stakeholders, including buyer, seller, employees, customers and regulatory authorities. Formulating and structuring such transactions requires:
- A background in engineering, technology and finance for the deal-making team;
- Deep understanding of the customer and the industry;
- Careful analysis and study of the impact of the transaction on multiple stakeholders;
- Understanding technologies and business processes in the industry; and
- Using flexible and innovative approaches to deal structuring that address the sometimes conflicting priorities of various stakeholders.
The infrastructure industry is ripe for such transactions. Jain opined that infrastructure mergers that do not benefit all stakeholders will either never be completed, or if they are completed, they will fail. As an example, the proposed SCANA-Dominion merger provides benefits to all stakeholders, although there are differing opinions about the adequacy of benefits to some stakeholders. Jain predicted that infrastructure M&A will be used as a tool to upgrade facilities, improve efficiency and unlock capital invested in dormant facilities, such as nuclear power plants.
ESC is considering additional strategic acquisitions. Interested parties should contact Jain at SMG. Also, SMG will consider taking on additional clients in the infrastructure industry that are considering growth by strategic acquisitions.
Strategic Mergers Group, Inc.
SOURCE Strategic Mergers Group, Inc.
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