Infinity Group Signs Definitive Agreement to be Acquired by Wood Group
HOUSTON, TX - December 8, 2015 - GulfStar Group ("GulfStar") is pleased to announce that The Infinity Group ("Infinity") has signed a definitive agreement to be acquired by Wood Group for initial cash consideration of $150 million dollars, plus up to an additional $42 million of cash consideration based on its financial performance over the performance period. If Infinity maintains its current level of financial performance over such period, the total consideration payable in cash will be approximately $176 million.
The agreement was signed on December 2, 2015 and is subject to a number of conditions, including U.S. anti-trust approval. The transaction is expected to close in December 2015. GulfStar served as the exclusive financial advisor to Infinity throughout the transaction.
Infinity is a leading U.S. industrial construction and maintenance contractor with in-house fabrication facilities providing services to the refining, petrochemical and gas processing industries. A family-owned business established in 1952, Infinity is headquartered in Clute, Texas, with six additional locations along the Texas Gulf Coast. The existing management team will continue to lead the business, which has approximately 2,500 personnel. Infinity currently has gross assets of around $92 million and is forecast to generate EBITA of $26 million in 2015.
"Joining Wood Group allows us to expand our service offering to their diverse customer base and gives us exposure to larger scale projects while also continuing to serve our current market and clients," said Harold Monical, Jr., president of Infinity Construction Services. "We are grateful to the team at GulfStar Group for their help in realizing this outcome for our company, our employees and our family. Throughout this entire process, their advice, guidance and absolute commitment to achieving our objectives proved invaluable."
Wood Group is an international energy services company with more than $7 billion sales and operating in more than 50 countries. The Group has three businesses - Wood Group PSN, Wood Group Kenny and Wood Group Mustang - which provide a range of engineering, production support and maintenance management services to the oil and gas and power generation industries worldwide. Infinity will operate within the Wood Group PSN Americas business unit, creating a brownfield service offering to the downstream market that complements the existing services of Wood Group PSN Australia Asia Pacific within the refining, chemicals and LNG sectors.
"The addition of The Infinity Group gives Wood Group PSN service line expansion, sector diversification, and entry into the US petrochemical and other downstream sectors, coupled with access to new clientele. Their 60-year history is a testament to the relationships they have built that we look forward to continuing and growing," said Dave Stewart, Wood Group PSN CEO.
The downstream portion of the energy market continues to be an area of focus and activity in GulfStar's Energy, Power and Infrastructure vertical. The GulfStar team consisted of Managing Director Colt Luedde, Managing Director Kent Kahle, Senior Vice President Brian Lobo, Vice President Rupert Gerard and Analyst Aaron Pyle.
"The acquisition of Infinity represents a strategic platform for Wood Group to establish a scaled presence in the U.S. downstream sector, thus providing significant growth opportunities from new service lines and further expansion into neighboring markets," said Luedde. "We are honored to have worked with the ownership of Infinity at this very important time in the life of this third generation business. We believe the combination with Wood Group represents a terrific opportunity for perpetuating the business they have so successfully built."
About GulfStar Group
GulfStar is a leading middle market investment bank headquartered in Houston. GulfStar specializes in providing merger and acquisition advisory services, institutional private placements of equity and debt, and general corporate finance advisory services to companies with revenues or enterprise values generally ranging from $25 million to $350 million. Since its formation in 1990, GulfStar has completed more than 630 transactions in 32 states and 13 foreign countries across a variety of industries.
Securities offered through GulfStar Group I, Ltd. an affiliated entity, member FINRA - SIPC.