Investcorp, the alternative asset manager that counts Mubadala Investment Company as its biggest shareholder, has acquired US-based electrical services provider Resa Power from private equity firm Blue Sea Capital as part of its expansion in the world’s largest economy.
The total value of the deal was not provided.
“We believe that the company is well-poised for growth as it operates in the large and growing electrical power services market driven by several macroeconomic tailwinds, including the need to upgrade public and private electrical infrastructure,” said Yusef Al Yusef, managing partner for Investcorp’s private wealth platform.
Houston-based Resa Power has more than 20 locations across the US and Canada. It provides maintenance and testing of electrical infrastructure, systems integration and related distribution services to clients across the renewables, commercial and industrial end markets in North America, the two companies said on Sunday.
“We believe Investcorp’s deep understanding of branch-based and human capital-centric industrial services businesses makes them an ideal partner for Resa’s next chapter of growth,” said Monte Roach, chief executive of Resa Power.
“Investcorp’s resources and expertise will help us accelerate our growth both organically and through acquisitions,” he added.
In September, Investcorp's executive chairman Mohammed Alardhi told Bloomberg that the company is “very bullish on the US economy”.
The Bahrain-based company is looking for more investments in the US, which – along with Europe – currently make up about 80 per cent of Investcorp’s global investment portfolio, he said.
It is on the lookout for private equity deals through its North America PE Fund, which has grown to more than $1 billion, he added. The company wants to acquire more real estate assets in the world’s biggest economy.
Since Mr Roach joined Resa Power in 2019, the company accelerated its growth, started two greenfield locations and completed four acquisitions in the past 12 months, officials said.
Investcorp’s partnership with Resa will focus on continuing the company’s organic growth, expanding geographically across North America and accelerating the potential to make strategic acquisitions, they added.
“We are particularly appreciative of the contributions of Resa’s technicians and employees throughout the pandemic, which contributed to its accelerating growth and increasing market share over the past 20 months and look forward to working with them as they continue to grow,” Mr Al Yusef said.
Investcorp has an established history of investing in providers of mission-critical infrastructure services, with notable past investments including The Wrench Group, a provider of residential infrastructure and essential maintenance services; Roadsafe Traffic Systems, a road infrastructure services, and Kee Safety, that deals in safety equipment for buildings and infrastructure, it said.
With assets worth more than $37bn under management, Investcorp has been on a deal-making spree over the past year to capitalise on lower asset valuations during the pandemic.
It made five new private equity investments in the US and Europe, two add-on acquisitions and 11 investments in businesses across Asia in the 12-month period to the end of June.
Investcorp expects its assets under management to more than double to $100bn in seven years’ time, as the company expands across the GCC and Asia, according to Mr Alardhi.
Investcorp operates across six business lines – private equity, real estate, credit, hedge funds, strategic capital and infrastructure.