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TPG in Pole Position to Acquire Pike Corp for More Than $5B; Ares to Lead Multibillion-Dollar Debt Financing 

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TPG is the frontrunner in the auction to acquire Lindsay Goldberg-backed Pike Corp. in a deal that would value the energy services provider at more than $5 billion, according to sources.

The private equity firm has lined up an up to $3 billion debt package for the transaction, which includes a unitranche and a delayed-draw term loan that will be used to pay down a portion of deferred purchase price. The financing is led by Ares Management, with Blackstone, Blue Owl, HPS, KKR and Oak Hill Advisors also participating.

Pike Corp. generates $450 million in EBITDA, as reported.

Advent International and Bain Capital also submitted final bids, according to an Octus report from Oct. 31. While TPG is considered to be the frontrunner in the process, the winning bidder has yet to sign the deal, the sources said.

Final bids were due Oct. 29. Morgan Stanley is advising on the sale process, as reported.

The deal is expected to be signed in the next day or two, the sources said.

Comparable companies in the industrial sector can be seen on Octus HERE.

Pike Corp.’s capital structure can be seen below.

Pike’s second-generation family owner, Erik Pike, has served as chairman and CEO for over 25 years, according to the company’s website.

Formed in 1945 and based in Charlotte, N.C., Pike provides turnkey infrastructure for electric and gas utilities as well as telecommunications companies. On the electric side, the company specializes in engineering, construction, maintenance and upgrading of transmission, distribution and substation infrastructure.

Lindsay Goldberg purchased a majority stake in Pike in 2020. At the time of the transaction, Morgan Stanley served as financial advisor to Pike.

Golub Capital is among existing private credit lenders to Pike, according to Octus’ BDC Database. As of June, Blue Owl Credit SLF holds a portion of the borrower’s SOFR+300 bps first lien senior secured loan, according to supplemental financial information included in a public filing. The CLO arms of large private credit lenders, such as Blackstone, also hold positions in Pike’s broadly syndicated term loan, according to Octus’ CLO Database.

Senior credit facilities to back leveraged buyouts in the industrial sector priced at SOFR+477 bps in the third quarter, according to Octus Private Credit dashboard.

Ares, Blackstone, KKR, HPS, Oak Hill Advisors, TPG and Advent International declined to comment. Blue Owl, Pike, Lindsay Goldberg and Bain Capital did not respond to requests for comment.
 

 

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