Brand Energy & Infrastructure Services and Safway Group announced an agreement to combine, creating an integrated industrial and commercial services company with broader capabilities and innovative solutions for customers globally.
CD&R will be the controlling shareholder of the combined company. Odyssey, which acquired Safway in 2009, will exit its investment.
With more than 115 locations in the U.S. 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 operates on six continents from more than 210 branches, 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 & refractory, mechanical services, forming & shoring and other complementary specialty services. Both organizations are recognized for their 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 the complementary strengths of both companies, including experienced, skilled and dedicated employees, a safety-first mentality, broad service distribution, innovation, operational excellence and a deep commitment to exceptional customer service.
“This is a transformational milestone for two highly complementary businesses and has a compelling strategic rationale,” said Paul Wood, Brand Chairman and Chief Executive Officer.
“As a single enterprise, our customers will benefit from a broader range of solutions and greater depth, as well as the 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 Chief Executive Officer 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 ensure that the company hits the ground running when the transaction closes.
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. Financial advisory services and financing are also being provided to Brand by Barclays, ING Capital, LLC and Peter J. Solomon Company, an affiliate of Natixis. Debevoise & Plimpton LLP is Brand's legal advisor. Harris Williams & Co is the financial advisor to Safway, and Latham & Watkins LLP is the company's legal advisor.