The Pike utility services company that moved its base to Charlotte earlier this year is being acquired by a partnership of private equity firms.
San Francisco-based TPG and Montreal-based La Caisse announced Monday they had acquired a majority interest in Pike, which offers infrastructure engineering and construction services to more than 400 U.S. utilities and other organizations.
The seller is PE group Lindsay Goldberg, which bought a majority stake in Pike in 2020. The transaction values Pike at more than $5 billion, reports Octus, a credit intelligence and data provider firm for investment banks, law firms and advisory firms.
TPG will invest in Pike through TPG Rise Climate, the firm’s climate investing platform, with La Caisse also taking a significant minority interest. J. Eric Pike, third-generation founder and chairman of Pike, and Pike CEO James Wyche, also are investing along with other existing investors.
Following completion of the transaction, the company will continue to be led by Wyche and the current management team. Eric Pike will continue to serve on the company’s board of directors. Terms of the transaction were not disclosed and officials declined to comment on the $5 billion estimated valuation.
Lindsay Goldberg bought 50.1% of Pike in the 2020 transaction, with Eric Pike and other investors holding the balance, according to a Moody’s report. Annual revenue at the time was $1.7 billion, Moody’s said.
Founded in 1945 by Pike’s grandfather, Floyd Pike, the company was based in Mount Airy for decades before establishing its headquarters in Charlotte this year. It has about 12,000 employees.
TPG has $286 billion in assets under management, along with about 1,900 employees, as of Sept. 30.
“Pike’s legacy as a family-founded company has been defined by safety, integrity and innovative solutions,” said Pike in a release. “Our success has been a direct result of the dedication of our team, our long-tenured customers and the support of our investors. I am excited to continue supporting the company with our new partners.”
TPG’s and La Caisse’s investments “provide us with the resources to execute our shared vision for Pike as the leading national provider for energy infrastructure solutions,” said Wyche in a release.
“As the U.S. power grid faces rising demand, aging infrastructure, and increased exposure to extreme weather, Pike is uniquely positioned to help utilities adapt, modernize, and harden their systems,” said Jonathan Garfinkel, a managing partner of TPG Rise Climate.
Moelis & Company served as financial adviser and Ropes & Gray as financing counsel to TPG in relation to this transaction. Simpson Thacher & Bartlett provided legal counsel to TPG and A&O Shearman served as legal advisor to La Caisse. Morgan Stanley & Co. served as Pike’s financial advisor and Kirkland & Ellis served as legal counsel.