New State Capital Partners and Jones Industrial Holdings announced today the separation and New State’s subsequent acquisition of Universal Plant Services’ rotating equipment segment. Financial terms of the transaction were not disclosed.
Universal Plant Services (“UPS” or “the Company”) is a leading provider of maintenance, repair and operations services for industrial equipment. New State has acquired the specialty equipment services related to all rotating, reciprocating and machinery, which will continue to operate under the Universal Plant Services brand name. Reagan Busbee, Chief Executive Officer; Paul Stouffer, President; and Deana Haygood, Chief Financial Officer will continue in their leadership roles and UPS will remain headquartered in Deer Park, Texas. JIH will retain the non-rotating equipment services (UPS Industrial Services), instrument & electrical (“UPS I&E”) and manufacturing equipment installation (“UPS M&T”) segments.
“We couldn’t be prouder of the stellar reputation that Universal Plant Services has earned throughout its nearly 40-year history,” said Bradley Jones and Stewart Jones, Co-CEOs and Co-Chairmen of Jones Industrial Holdings. “We are confident that exceptional status will be upheld by both companies as each is given the opportunity to truly thrive in their respective fields.”
“This partnership with New State represents a significant milestone for our company,” said Reagan Busbee, CEO of UPS. “Coupling our team’s technical expertise and long-term client relationships with New State’s operational support and financial resources will be invaluable as we execute on our growth strategy. This targeted operating strategy makes us even more desirable as a partner, and we’ll be even more competitive as we recruit, hire, and retain the most highly skilled craftspeople in the industry. We are confident in a bright future for UPS with New State by our side.”
“Essentially this business has always been, and will continue to be, about our people. UPS has been a field services powerhouse for decades bolstered by an enviable culture based on our three pillars of safety, quality and leadership,” explains Paul Stouffer, President of UPS. “None of that will change. What will change is the size, with one large company becoming two laser-focused companies with different specialty services from each other. This change improves our ability to be even more nimble for our customers, and we will be equipped to better serve our team, as well.”
“The UPS management team has become a premier player in the industrial services sector. We look forward to building on UPS’ tradition of operational excellence,” said Will Swayne, Senior Principal at New State. “UPS is the perfect anchor investment for a broader industrial aftermarket platform, and we will be actively seeking additional acquisitions to expand service capabilities, end markets, and geographies.”
New State funded the investment out of its Fund III, along with substantial co-investment from its Limited Partners. New State partnered on this acquisition with APEX Capital Partners, an independent sponsor focused on the industrial, manufacturing, business services, renewable & energy transition sectors. This marks the third investment in which New State has partnered with an independent sponsor. Morgan, Lewis & Bockius acted as legal advisors and Piper Sandler provided financial advisory services to New State. Sidley Austin and Harris Williams acted as legal and financial advisors, respectively, for UPS.
About Universal Plant Services
Universal Plant Services (UPS) is the industry’s foremost specialists in rotating and reciprocating equipment services. With headquarters in Houston, Texas and 14 locations across the U.S., UPS specializes in mission-critical services for downstream energy facilities, midstream pipeline stations, and other industrial sites. UPS leverages its vast experience, superior infield execution, industry-leading safety record and technical prowess to deliver excellence across nested maintenance, turnarounds and outages, and installations. For more information, please visit universalplant.com.
About Jones Industrial Holdings
Jones Industrial Holdings, headquartered in Houston, Texas, is a privately held holding company for UPS Industrial Services, UPS Instrument & Electrical and UPS Manufacturing & Technology. UPS Industrial Services is one of the largest specialty service providers for fixed equipment in the refining, petrochemical, LNG and renewable industries in the United States. For more information, please visit jonesindustrial.com and upsindustrial.com.
About New State Capital Partners
New State Capital Partners is an entrepreneurial-minded private equity firm that strives to be nimble, decisive, and cooperative. New State prides itself on a long-term outlook, approaching each potential investment as an opportunity to create lasting and valuable relationships with company founders and especially independent sponsors. The firm seeks to invest in market-leading, middle market companies with services-based business models. New State and its affiliates have invested in over 40 companies to date. For more information, visit www.newstatecp.com.
