New State Capital Partners (New State) and Jones Industrial Holdings (JIH) announced the separation of, and New State’s subsequent acquisition of, Universal Plant Services’ rotating equipment segment.
Financial terms of the transaction were not disclosed.
Universal Plant Services (UPS) is a leading provider of maintenance, repair and operations services for industrial equipment. New State has acquired the specialty equipment services related to all rotating, reciprocating and machinery, which will continue to operate under the Universal Plant Services brand name. Reagan Busbee, Chief Executive Officer; Paul Stouffer, President; and Deana Haygood, Chief Financial Officer will continue in their leadership roles and UPS will remain headquartered in Deer Park, Texas. JIH will retain the non-rotating equipment services (UPS Industrial Services), instrument & electrical (UPS I&E) and manufacturing equipment installation (UPS M&T) segments.
“We couldn’t be prouder of the stellar reputation that Universal Plant Services has earned throughout its nearly 40-year history,” said Bradley Jones and Stewart Jones, Co-CEOs and Co-Chairmen of Jones Industrial Holdings. “We are confident that exceptional status will be upheld by both companies as each is given the opportunity to truly thrive in their respective fields.”
“This partnership with New State represents a significant milestone for our company,” said Reagan Busbee, CEO of UPS. “Coupling our team’s technical expertise and long-term client relationships with New State’s operational support and financial resources will be invaluable as we execute on our growth strategy. This targeted operating strategy makes us even more desirable as a partner, and we’ll be even more competitive as we recruit, hire, and retain the most highly skilled craftspeople in the industry. We are confident in a bright future for UPS with New State by our side.”
“Essentially this business has always been, and will continue to be, about our people. UPS has been a field services powerhouse for decades bolstered by an enviable culture based on our three pillars of safety, quality and leadership,” explains Paul Stouffer, President of UPS. “None of that will change. What will change is the size, with one large company becoming two laser-focused companies with different specialty services from each other. This change improves our ability to be even more nimble for our customers, and we will be equipped to better serve our team, as well.”
“The UPS management team has become a premier player in the industrial services sector. We look forward to building on UPS’ tradition of operational excellence," said Will Swayne, Senior Principal at New State. “UPS is the perfect anchor investment for a broader industrial aftermarket platform, and we will be actively seeking additional acquisitions to expand service capabilities, end markets, and geographies.”
New State funded the investment out of its Fund III, along with substantial co-investment from its Limited Partners. New State partnered on this acquisition with APEX Capital Partners, an independent sponsor focused on the industrial, manufacturing, business services, renewable & energy transition sectors. This marks the third investment in which New State has partnered with an independent sponsor. Morgan, Lewis & Bockius acted as legal advisors and Piper Sandler provided financial advisory services to New State. Sidley Austin and Harris Williams acted as legal and financial advisors, respectively, for UPS.
