Partners Group is expanding the shareholder base of United States Infrastructure Corporation, a North American provider of utility location services with Kohlberg & Company acquiring a 50% stake in then business. Partners Group will retain a 50% co-lead interest.

Kohlberg was joined in this investment by a group of new partners that includes funds managed by Neuberger Berman. The transaction values USIC at an enterprise value of $4.1bn.

USIC currently serves over 1,300 customers in the US and Canada across six utility markets: cable, telecom, electric, gas, water, and sewer. It has a workforce of 9,000 technicians that perform 80 million locates each year. The demand for USIC’s services is set to rise due to higher excavation activity following President Biden’s Infrastructure Bill, new 5G densification initiatives, increased awareness of the importance of conducting locates, and a shift to outsourcing on the part of utilities.

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Since acquiring USIC in 2017, Partners Group has installed an entrepreneurial Board that has helped transform the Company and drive strong organic growth, with EBITDA increasing 77% in the last five years.

Key value creation initiatives have included investing in technician training, launching new tools to improve productivity and operational performance, and capturing pricing adjustments and improved contract terms.

Partners Group also introduced a programme to improve USIC’s approach to health & safety, which has led to technician motor vehicle accidents falling by a third and field injuries and lost-time incident rates halving.

Partners Group and Kohlberg will implement new value creation initiatives to further build on these foundations, including investing in sales and digital capabilities.

Source: Private Equity Wire

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