Double acquisition for ECP firm

Power Line Services, a portfolio company of US-based fund manager Energy Capital Partners, has acquired two businesses – Snelson and IPS Engineering – as it grows west of the Rocky Mountains and adds pipeline construction to its activities.

Power Line Services, a portfolio company of US-based fund manager Energy Capital Partners (ECP), has acquired Snelson Companies (Snelson) and IPS Engineering (IPSE) from GFI Energy Group – a specialised investment operation within US private equity firm Oaktree Capital Management – and other shareholders.

Based in Washington, Snelson builds and provides maintenance services for pipelines and related facilities and infrastructure in the oil and gas industry. The firm’s services include pipeline and gas distribution, pipeline emergency response, utility and communications installation, pipe and vessel fabrication, storage tank relocation and general industrial construction.

Meanwhile, Tulsa, Oklahoma-based IPSE is involved in the analysis, design, drafting/mapping, specification, procurement, construction, testing and start-up commissioning of pipelines, pump stations, compressor stations, meter stations, small process plants and related facilities for liquids and gases. It serves customers in the Midwest and Marcellus regions.

Texas-based Power Line Services – a provider of electrical infrastructure construction, maintenance and inspection services – was formed as a start-up by ECP in March 2010 through the initial acquisition of three firms. At the time, ECP partner Scott Helm said: “We believe Power Line Services has a window over the next several years to position itself to capitalise on the significant new electric transmission construction activity we expect to occur in the southwestern United States and other areas.”

A statement announcing the latest acquisitions said they would “further diversify” Power Line Services’ “energy infrastructure construction and maintenance services capabilities, extend its operating footprint west of the Rockies and add pipeline construction to its suite of businesses”.

In August 2010, ECP raised $4.335 billion for its Fund II, which is focused on the acquisition, development and construction of North American energy infrastructure assets. The fund had a target size of $3.5 billion.