ArcLight Capital sells its stake in La Porte refinery servies company for $455M

ArcLight Capital

Norwalk, Conn.-based construction and energy infrastructure company EMCOR Group Inc. (NYSE: EME) has entered into a definitive agreement to acquire RepconStrickland Inc., a provider of recurring turnaround and specialty services to the North American refinery and petrochemical markets. EMCOR is acquiring the privately held company in an all cash transaction valued at approximately $455 million from its shareholders, including its majority shareholder, an affiliate of ArcLight Capital Partners LLC, an energy focused private equity fund.

Headquartered in La Porte, TX and Corpus Christi, TX, RepconStrickland was founded 36 years ago and made $400 million in revenue last year.

Tony Guzzi, president and CEO of EMCOR Group, commented, “The acquisition of RepconStrickland strengthens our position in the industrial and energy sectors which are attractive industries poised for future growth.  RepconStrickland is an extremely well-run organization that provides turnaround and specialty services across North America, with a focus in the US Gulf.”                                     

The transaction is expected to close in early July, subject to customary closing conditions and regulatory approvals. The acquisition of RepconStrickland is expected to be accretive to EMCOR’s earnings for the balance of 2013 by approximately $0.10 per share, excluding transaction expenses, with significantly accelerated earnings per share contribution in 2014.  Estimated transaction costs are expected to be between $6.0 million - $7.0 million.

JP Morgan Securities LLC is acting as financial advisor to EMCOR Group.

Harris Williams & Co. is acting as the exclusive financial advisor to RepconStrickland.

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