Allegiance Capital Facilitates Huntsman Gay Global Capital’s Strategic Investment In T&D Solutions, LLC
Dedicated Focus on Energy and Infrastructure Drives IB’s Deal Flow
Dallas – February 1, 2010 – Allegiance Capital, an international investment banking firm serving privately-held middle-market companies, has facilitated Huntsman Gay Global Capital’s purchase of a controlling interest in T&D Solutions, LLC, a power line maintenance services company. Salt Lake City-based Huntsman Gay, a partner of Allegiance Capital, will recapitalize T&D Solutions through a growth equity investment. The current management team will remain in place and retain a significant ownership stake in the company. Terms of the private transaction were not disclosed.
According to Fred McCallister and Ron Blagg, vice presidents at Allegiance Capital involved in the transaction, Allegiance Capital has created a specialized practice dedicated to energy infrastructure with a focus on transmission and distribution. The firm is currently involved in several engagements in the space including three wind farms with cumulative generating capacity of more than 650 megawatts.
“The Public Utilities Commission indicates a $200 billion investment is being made in projects to strengthen the national power grid, with $5 billion dedicated to Texas projects,” McCallister said. “Allegiance Capital sees incredible opportunity for companies that play a role in the transmission and distribution build-out. A large number of investors are interested in this space given the growth opportunities that are available.”
The investment by Huntsman Gay, a middle market private equity firm, will be instrumental in helping T&D capitalize on the growing demand for expert maintenance services in the U.S., fueled by an aging electric grid and government-enforced reliability standards. Utilities are increasingly outsourcing this work to experienced, reputable partners. T&D Solutions provides power to many investor-owned utilities, municipalities, and co-ops in the southern United States, and has distinguished itself in the industry through both the quality of its service and an industry-leading safety record, which has led to rapid growth and solid customer relationships with some of the region’s largest utility owners.
About Allegiance Capital
Allegiance Capital Corporation is a full-service investment banking firm specializing in the middle market (companies with revenue from $20 million to $500 million). Through its global network, Allegiance Capital assists companies in every aspect of selling and financing a business, including debt restructuring, mezzanine financing, buy out management, strategic partnering, consulting and other related services. For more information, refer to the company website: www.allcapcorp.com.
Allegiance Capital Corporation