Private equity firm Clayton Dubilier & Rice is buying Brand Energy & Infrastructure Services Inc., and combining it into a newly formed joint venture with Harsco Corp.’s (NYSE: HSC) infrastructure division.
Harsco, which is selling the infrastructure division into the new joint venture, will receive $300 million and a 29 percent equity stake in the combined company. Camp Hill, Pa.-based Harsco is selling the company in order to focus on its metals and minerals segment. Harsco focuses on provided services to customer’s steel mills, railroads, industrial plants and natural gas fields.
First Reserve, an energy-focused private equity firm based in Greenwich, Conn., is selling Brand Energy & Infrastructure to Clayton Dubilier.
The new company will be called Brand Energy & Infrastructure Services, and will provide industrial services to the energy and infrastructure sectors.
Morgan Stanley, Citigroup Global Markets Inc., Goldman Sachs Bank USA and UBS Investment Bank committed financing for the Harsco portion of the deal.
Robert W. Baird & Co. and Credit Suisse acted as Harsco’s financial advisers, while Weil Gotshal & Manges LLP provided legal advice. Morgan Stanley, Citi, Goldman Sachs & Co. (NYSE: GS) and UBS Investment Bank acted as financial advisers to Clayton Dubilier for the Harsco portion of the deal. Citi, Goldman and UBS Investment Bank were also Clayton Dubilier’s financial advisers in connection with the joint venture. Debevoise & Plimpton LLP provided legal advice to Clayton Dubilier.
As energy deals continue to flow, companies have also been investing in oil and gas services companies. In August, USA Compression Partners LP (NYSE: USAC) agreed to pay $187 million to buy compression assets, used for crude oil production, from S&R Compression LLC. Also in August, Actuant Corp. (NYSE: ATU) reached a $225 million deal for Viking SeaTech, which provides equipment and services to the offshore oil and gas industry. In July, Emcor Group Inc. (NYSE: EME) closed a deal for RepconStrickland Inc., a company that provides services to oil refineries, for $455 million.