Safway Group Agrees to Merge with Brand Energy & Infrastructure Services
Brand Energy & Infrastructure Services, a portfolio company of Clayton, Dubilier & Rice, and Safway Group, owned by Odyssey Investment Partners, recently announced an agreement to merge, creating an integrated industrial and commercial services company with broader capabilities. CD&R will be the controlling shareholder of the combined company.
Odyssey, which acquired Safway in 2009, will exit its investment. Terms of the transaction were not disclosed.
With more than 115 locations in the United States and Canada, Safway is a leading provider of scaffolding and motorized aerial access solutions and insulation and coating services to commercial, industrial and infrastructure customers in North America. Brand, which has more than 210 branches on six continents, is a leading provider of specialized services to global energy, industrial and infrastructure customers, including work access, corrosion management, atmospheric and immersion coatings, insulation services, fireproofing and refractory, mechanical services, forming and shoring and other services. Both organizations have been recognized for superior safety records.
At closing, which is expected to occur in the third quarter of 2017, the combined business will have annual sales of approximately $5 billion. The combination brings together experienced skilled employees, a safety-first mentality, broad service distribution, innovation, operational excellence and a deep commitment to customer service.
“This is a transformational milestone for two highly complementary businesses and has a compelling strategic rationale,” said Paul Wood, Brand chairman and CEO. “As a single enterprise, our customers will benefit from a broader range of solutions and greater depth, as well as expertise to provide exceptional service to industrial, commercial and infrastructure customers.”
“We believe our customers will derive significant value through expanded services and expertise, increased geographic coverage and greater scale that will enhance our flexibility and responsiveness,” added Bill Hayes, president and CEO of Safway Group. “Our diversified business mix and enhanced growth platform will also create attractive and rewarding growth opportunities for the employees of both companies.”
The companies will continue to operate independently until the transaction closes. An Integration Planning Team, comprised of members from both Brand and Safway will be established to help the company to hit the ground running when the transaction is finalized. CD&R Operating Partner John Krenicki, who serves as Brand’s lead director, will provide oversight to the combined company post-closing.
Goldman Sachs & Co. served as Brand’s lead financial advisor and is providing financing.
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.