InfrastruX Group Expands Leading Infrastructure Services Business with Acquisition of Hawkeye - 11/06/06
BELLEVUE, Wash. – InfrastruX Group, a national provider of utility infrastructure construction and maintenance services, today announced that it has acquired Hawkeye, LLC, a Hauppauge, N.Y.-based company operating in the Northeast and Mid-Atlantic states that offers construction services to the utility industry and state and local municipalities. The transaction was financed through a $430 million recapitalization of InfrastruX Group, which is owned by Tenaska Power Fund, L.P.
Under the terms of the completed transaction, Hawkeye and its subsidiaries, which together have approximately $200 million in annual revenues, eight offices and 1,100 employees, will continue to operate under their existing brand names as part of InfrastruX Group. William J. Haugland, Hawkeye’s founder and president, and the rest of Hawkeye’s management team will remain with the combined company.
Hawkeye’s expertise in utility infrastructure services and its strong presence in the Northeastern U.S. complement InfrastruX Group’s current services offering and geographic locations. The newly combined company will be able to provide enhanced maintenance and construction services to utilities across North America that are looking for innovative, reliable and efficient ways to upgrade the existing energy infrastructure.
“Demand from the utility industry for infrastructure maintenance and construction services continues to increase, and our acquisition of Hawkeye broadens our capabilities and strengthens our national leadership position in this currently underserved market,” said Michael T. Lennon, president and chief executive officer, InfrastruX Group. “Hawkeye adds critical mass to our business and to our presence in New England and the Mid-Atlantic states , thereby significantly expanding our ability to service our customers and provide opportunities to our employees. Bill Haugland and his team have built Hawkeye into the successful company that it is today and we welcome them and their dedicated employees to our company.”
“InfrastruX Group is a market leader that shares our business model and customer-centric focus and culture,” said Haugland. “This is a significant milestone for Hawkeye, as we are now part of a larger company with the scale, geographic presence and resources to help utilities across North America meet the pressing challenge of improving the infrastructure that serves as the backbone for the energy needs of the U.S. and Canada . All of us at Hawkeye are excited about the multiple growth opportunities now before us and we look forward to working with our new colleagues at InfrastruX Group to continue to deliver the high-quality services and attention that customers have come to expect of both of our companies.”
Prior to the Hawkeye acquisition, InfrastruX Group’s annual revenues were approximately $450 million. With the backing of Tenaska Power Fund, the company’s revenues have increased approximately 16% over the last year. The acquisition of Hawkeye enables InfrastruX Group to expand its leading utility infrastructure services business. With Hawkeye, InfrastruX Group will have 54 offices and 4,100 employees, and will have broadened and deepened its expertise to manage diverse utility infrastructure projects anywhere in the U.S. and Canada . It also will be able to compete for a wider range of projects, including those that require a unionized workforce.
The $430 million refinancing of InfrastruX Group, which closed upon consummation of InfrastruX Group’s acquisition of Hawkeye, was led by Credit Suisse and UBS Securities.
About InfrastruX Group
InfrastruX Group is a national leader in providing infrastructure construction services to the gas, electric, water/sewer, and telecommunication industries, with a complete range of design, engineering, installation, and maintenance resources available across North America . It also has an international presence through the widespread use of its patented treatments for water-damaged power and telecommunication lines. The strength of the InfrastruX Group, combined with the extensive capabilities of its subsidiaries, offers unprecedented value to all of its clients, including municipalities, cooperatives and large investor-owned utilities and telecommunication companies. In June 2006, InfrastruX Group and TXU Corp. formed a joint venture called InfrastruX Energy Services Group L.P. to provide utility infrastructure and management services for utility companies in North America . InfrastruX Group is owned by Tenaska Power Fund , L.P., a private equity fund that acquired the company in May 2006. More information about InfrastruX Group is available at www.infrastrux.com, and about Tenaska Power Fund , L.P. at www.tenaska.com/powerfund/index.html.
About Hawkeye
Hawkeye, based in Hauppauge, N.Y., with operations throughout the Northeast and Mid-Atlantic states, offers complete construction services to utilities and state and local municipalities, including: electric transmission and distribution; line construction; power generation construction and maintenance; fiber optic cable installation; gas main service, installation, survey and repair; and general construction. More information about Hawkeye is available at www.hawkeyellc.com.
