Operations-Focused Investment Firm Recapitalizes Ground Engineering Specialist
LOS ANGELES and MADRID (Oct. 29, 2014) – Platinum Equity today announced it has acquired a majority interest in ground engineering firm Grupo Terratest (“Terratest”). Financial terms of the transaction were not disclosed.
Headquartered in Madrid and providing services around the world, Terratest is a specialized international contractor providing foundation work, ground improvement and micro-tunneling services for large-scale infrastructure projects and industrial, commercial and residential construction. Platinum Equity is a global private equity firm currently investing from a $3.75 billion buyout fund focused on acquiring businesses that can benefit from the firm’s operational expertise.
“Terratest is a leader in its industry with a well-recognized brand, strong management, talented employees and differentiated technologies,” said Platinum Equity Partner Jacob Kotzubei, who leads the team that executed the investment.
Enrique Torres, a 28-year veteran of Terratest who has been CEO since 2010, will continue to lead the company under Platinum Equity’s ownership.
“Platinum Equity’s investment is great news for our business. We now have strong financial backing and additional strategic and operational resources to help us grow,” said Mr. Torres. “We have an expanding backlog of new business and all the tools we need to maximize our potential.”
Platinum Equity worked closely with Terratest and its lending syndicate to develop and execute a recapitalization plan that deleveraged the business and resulted in Platinum Equity becoming majority owner.
“We developed a transaction that provided a solution for the lenders, a healthy balance sheet for the company, and an opportunity for Platinum Equity to create value through growth and enhanced operational performance,” said Mr. Kotzubei. “With the recapitalization complete, Terratest can continue to focus on providing the world-class engineering services its known for to a global customer base.”
Under Mr. Torres’ leadership, Terratest has diversified in recent years beyond Spain and today also does business throughout Europe, Latin America, Africa and the Middle East.
Mr. Kotzubei said Platinum Equity’s M&A and operations teams will work with Mr. Torres and Terratest’s executive management team to support the company’s continued expansion.
“Terratest is now a great platform for growth and we will pursue opportunities to expand the business and its services both organically and through potential add-on acquisitions,” said Mr. Kotzubei.
Sigrun Partners served as financial advisor to Platinum Equity on the Terratest investment and Gómez-Acebo & Pombo served as Platinum Equity’s legal advisor.
About Platinum Equity
Founded by Tom Gores in 1995, Platinum Equity is a global investment firm with more than $7 billion in assets under management and a portfolio of operating companies that generated approximately $15 billion in revenue in 2013. Platinum Equity specializes in mergers, acquisitions and operations – a trademarked strategy the firm calls M&A&O® – acquiring and operating companies in a broad range of business markets, including manufacturing, information technology, telecommunications, transportation and logistics, media, equipment rental, metals and other industries. Over the past 19 years Platinum Equity has completed more than 150 acquisitions. For more information, visit Platinum Equity’s website: www.platinumequity.com.