October 06, 2008
TORONTO: Teachers' Private Capital, the private investment arm of the Ontario Teachers' Pension Plan (Teachers'), has entered into a definitive purchase agreement to acquire U.S.-based Aquilex Holdings, LLC (Aquilex) from Harvest Partners, a private investment firm. The transaction is scheduled to close in December and is subject to regulatory approvals.
"With its market leadership position, revenue and cash flow stability, strong margins and robust growth prospects, Aquilex represents an attractive investment opportunity and fits well with Teachers' Private Capital's investment criteria," said Erol Uzumeri, Senior Vice-President, Teachers' Private Capital. "The company has a consistent and successful track record of building shareholder value, and Teachers' is well-positioned to support its growth initiatives."
Teachers' provided committed financing for the entire purchase price and subsequently received a third party commitment for the senior financing. "We are confident that the operations of Aquilex will be insulated from the recent challenges affecting the financial markets," Mr. Uzumeri noted. "We feel that this is a unique opportunity to leverage Teachers' balance sheet strength during a period of capital-raising uncertainty."
"Management is excited to have Teachers' on board and we look forward to working together to further increase Aquilex's long-term value," said Bill Varner, Aquilex's CEO. "Our operational and financial performance have shown strong momentum and with Teachers' support, we anticipate continued success."
Aquilex is the leading provider of mission-critical and routine maintenance, repair and industrial cleaning services to the oil refining, fossil power, nuclear, petrochemical and waste-to-energy industries. The company had 2007 revenues in excess of US$550 million. It is headquartered in Atlanta, Georgia and has approximately 5,000 employees in locations across the United States and Europe.
Teachers' advisors on the transaction included Morgan Stanley, who acted as M&A advisor, and Sullivan & Cromwell LLP who provided legal advice. Harris Williams & Co. advised Aquilex on the transaction.
About Teachers' Private Capital
With $18 billion in invested and committed capital, Teachers' Private Capital is one of the world's largest private equity investors. It is the private investment arm of the $108.5-billion Ontario Teachers' Pension Plan, the largest single-profession pension plan in Canada. The Ontario Teachers' Pension Plan is an independent corporation responsible for investing the fund and administering the pensions of Ontario's 278,000 active and retired teachers.
Director, Communications and Media Relations
Ontario Teachers' Pension Plan