BACKGROUND 

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Headquartered in Irvine, California, and founded in 2010, Station Electric, Inc. (“SEI”) is a leading provider of electric utility substation infrastructure construction and maintenance services throughout Southern California. 

 

The President and majority owner of SEI was nearing retirement age, and had been working with a regional lower middle-market M&A advisory firm for a couple years, trying to find a transaction that would allow him to monetize his holdings in SEI and transition out of the business, but was unsuccessful.

 

We were able to connect with SEI as a result of our firm’s industry outreach, and the owners quickly realized that they could benefit from an investment banking firm that had specific industry experience and knowledge. After reviewing some valuation and process guidance, they engaged Romanchuk & Co. with a sell-side investment banking mandate.

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INITIAL PROCESS LEADS TO FORMATION OF NEW PLATFORM​

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During our limited-auction marketing process to targeted strategics and focused private equity investors that we knew were looking to deploy capital in this sector, we ended up finding a great fit with Warren Equity Partners. They had a successful history in the T&D sector, recently exiting their last platform just months earlier. We knew that with the level of capital that Warren would want to deploy in a new platform, that Station Electric may be better suited to be the add-on, so we were engaged by Warren Equity to help them find a larger company that could serve as their new T&D platform. 

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One of our past investment banking clients, kV Power, had been successfully growing their company and would not only be a good size to serve as a potential new platform company, but was also contemplating going to market later in the year to recapitalize the company. We were able to get Warren Equity in front of the pending marketing process and introduce them to kV Power and Rock Hill. kV turned out to be a great fit for what Warren was looking to do next in the sector.

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Warren ran both transaction processes concurrently and completed their majority recapitalization of kV Power just two weeks prior to closing on the transaction with Station Electric.

 

“Romanchuk & Co. brought the specific industry expertise and knowledge to our deal to make sure we were able to find a partner and complete our transaction. After previous attempts had been unsuccessful, we definitely saw the difference that experience can make. They knew our industry and knew how to position and market our company in order to maximize the value of what we had built at Station Electric over the years.”  

- Art Wolf, President, Station Electric

 

Romanchuk & Co. provides strategic advisory services to our clients across the lower middle market, including sourcing, initiating, structuring and negotiating mergers and acquisitions, raising capital, as well as providing valuation and restructuring services. We specialize in advising owners of privately-held businesses on the preparation and sale of their company, facilitating mergers and acquisitions, guiding companies through capital raises, and assisting in identifying and executing upon strategic opportunities.