Calvert Street Sells IOS Holdings
On March 13, 2015, IOS Holdings, Inc. ("IOS"), a portfolio company of Calvert Street Capital Partners ("Calvert Street"), was acquired by L.B. Foster Company (NASDAQ: FSTR). IOS is the leading independent provider of inspection, testing and tubular integrity management services to the upstream oil and gas industry.
IOS represents an excellent example of Calvert Street's investment strategy and approach. During its four year ownership period, Calvert Street led the acquisition of seven companies, assisted in the recruitment of a new senior management team, and oversaw the development of the strategic plan to build the leading independent provider of inspection, testing and other tubular integrity management services in North America. The transition of the company from seven disparate and entrepreneur-managed businesses to an organized, integrated and professional enterprise was led by Calvert Street's key hire, Dal Miller, CEO. Formerly with Schlumberger and Team Industrial Services, Dal was a critical partner in the development and execution of the strategy to build strong management, sales, operations, quality and safety teams, as well integrate the acquisitions and standardize operating procedures and controls to build this best-in-class service provider. During Calvert Street's ownership and under Dal's leadership, IOS's revenue and EBITDA increased by nearly 6x and 8x, respectively.
Dal Miller, CEO of IOS, commented: "I am proud of what we built at IOS in a relatively short period of time. Calvert Street's vision, energy and the resources they brought to bear in this strategy were critical to our success. The management team and I are grateful for all of their support, guidance and preparation for the next phase of the company's life as a part of L.B. Foster."
Brian Guerin, Partner with Calvert Street, added: "We thank Dal and the rest of his team for their successful efforts in building and transforming IOS into a uniquely valuable player in the upstream testing and inspection space. They were outstanding partners during our ownership and we wish them continued success at L.B. Foster."
Harris Williams, Farlie Turner, and Willkie Farr & Gallagher represented IOS in this transaction.
Based in Houston, TX, IOS provides non-destructive testing, inspection and other asset integrity services, such as repair and threading for oil country tubular goods and drill tools. The company has a presence in every major unconventional shale play in the Lower 48 and operates a national platform with 23 locations across the U.S. The company's inspection and integrity services ensure safety, reliability, compliance and asset performance, providing significant value to customers throughout the life cycle of an oil or gas well. For more information on IOS, visit www.iosinspection.com.
Founded in 1995, Calvert Street is a lower middle market private equity firm based in Baltimore, MD, with a long, successful track record of building businesses in the industrial services, testing and inspection, business services, healthcare information technology, and niche manufacturing sectors. For more information about Calvert Street Capital Partners, visit www.cscp.com.
L.B. Foster supplies transportation, construction, utility, energy, recreation and agriculture markets with the materials necessary to build and maintain their infrastructure. The company is a leading manufacturer, fabricator and distributor of quality transportation and construction materials. For more information about L.B. Foster, visit www.lbfoster.com.