Aquila Power Services Acquires Welding Services Inc. and Secures Additional Funding.Business/Energy Editors HOUSTON--(BUSINESS WIRE)--March 25, 2002 WSI See wafer scale integration. Marks Aquila's second acquisition, extending First Reserve Corporation's plan to develop buy-build platform in power industry Aquila Power Services Corporation, a newly formed holding company of First Reserve Corporation, announced today the acquisition of Welding Services Inc ("WSI"). WSI is the worldwide leading provider of engineered welding solutions through its patented weld overlay process, as well as maintenance, modification, and repair services for the power and other industries. The move represents the second step in Aquila's plan to assemble a buy-build platform of complementary businesses related to power industry services and equipment. Aquila acquired turbine component manufacturer C&W Fabricators Inc. in November 2001. WSI serves the waste-to-energy, fossil-fueled and nuclear power generation, chemical and refinery, pulp and paper, and other industries. WSI's highly-automated and remotely-controlled welding systems enhance, re-establish and preserve the mechanical and structural integrity of critical equipment and components, such as pressure vessels, heat exchange units, nuclear reactors, valves, and turbines that are subject to erosion, corrosion, and general wear. WSI's customized applications offer several long-term benefits to clients by increasing the life span of components (and thus deferring purchase of replacement equipment), reducing routine or recurring maintenance (both frequency and cost), and minimizing the length of scheduled shutdown and outage periods. "We see the potential for even greater growth for WSI via geographic expansion, customer diversification, and market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" ," said Aquila CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Joseph S. Compofelice. "WSI is the leader in providing specialized maintenance, repair and overhaul Maintenance, Repair and Overhaul or MRO is a multi-billion dollar industry which works on international authorization rules to deliver a safe airline operation and to assure reliability and availability of customer fleets. services in these industries, and their value proposition for clients worldwide is compelling." Concurrent with the closing of the WSI acquisition, Aquila obtained funding of $130 million in additional debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay . Deutsche Banc Alex. Brown Inc., an affiliate of Deutsche Bank Deutsche Bank AG (IPA: /'dɔɪ.tʃə/[1]) (ISIN: DE0005140008, NYSE: DB) (English: German Bank AG, was the lead arranger Lead arranger The senior tier of arranger and sole book manager for a $100 million senior secured credit facility, which consists of a $75 million term loan and a $25 million revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility. Duke Capital Partners, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , a wholly-owned subsidiary of Duke Energy, provided $30 million in subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". financing. First Reserve provided the equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. for Aquila's acquisition of WSI. About Welding Services Inc. Founded in 1978, Welding Services Inc. (Norcross, Ga) is one of the largest specialty mechanical maintenance contractors in the world, providing field and shop maintenance services to the power, nuclear, chemical, pulp & paper and similar heavy industries. With domestic and international sales offices and shop locations, WSI can quickly respond to emergency repair situations or efficiently respond to scheduled contract maintenance requirements. WSI solutions automate routine, tedious and quality-critical maintenance practices, substantially improving the quality of repairs, the productivity and safety of personnel, and the performance longevity of repairs and upgrades. About Aquila Power Services Corporation First Reserve Corporation recently formed Aquila Power Services Corporation (Houston) to capitalize on the projected growth for services and equipment in the power and other industries, both domestically and internationally. Aquila is assembling a platform of complementary companies related to power industry services and equipment. To date, Aquila has acquired C&W Fabricators Inc. of Gardner, Mass. (a leading supplier of engineered components to combustion turbine manufacturers), and Welding Services Inc. of Norcross, Ga. (a leading specialty mechanical maintenance contractor). To fund further expansion in these industries, First Reserve intends to invest additional equity in Aquila. Aquila Power Services is not affiliated with the Aquila subsidiary of UtiliCorp United Inc. About First Reserve Corporation First Reserve Corporation (Greenwich, Conn.) is the leading private equity firm specializing in the energy industry, with $2.5 billion under management. Founded in 1980, First Reserve was the first private equity investment firm to actively pursue building a broadly diversified investment portfolio within the energy industry. First Reserve is currently or has been in the past the largest shareholder of Chicago Bridge & Iron, Pride International, National Oilwell, Weatherford International, Maverick Tube Corporation, Cal Dive, and Superior Energy Services Superior Energy Services is an oil and gas company based in Harvey, Louisiana, USA with many other locations around the world. . |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion