Transaction overview
On April 18, 2024, MPE Partners acquired SabCon Underground in a deal valued at an undisclosed amount. The transaction closed on the same day and was announced simultaneously. Precision Pipeline, a portfolio company of MPE Partners, participated alongside the private equity firm in this acquisition of SabCon Underground, a Florida-based provider of natural gas utility services.
Deal structure and financing
The specifics of the financial structure and terms were not disclosed by either party involved in the transaction. PGIM Private Capital provided financing to support the deal, but details on the equity-debt split, leverage metrics, or any lock-up agreements are unavailable at this time. Additionally, no information was released regarding whether MPE Partners or Precision Pipeline retained a stake in SabCon Underground post-acquisition.
Strategic context
MPE Partners and Precision Pipeline’s acquisition of SabCon Underground marks an expansion into the natural gas utility services sector for both entities. The deal is seen as a strategic move to enhance their service offerings and geographic presence within Florida, particularly focusing on critical repair, installation, replacement, and maintenance services. Kellie Burns, Founder and President of SabCon Underground, expressed enthusiasm about the partnership with Precision Pipeline, noting its potential to support future growth initiatives.
For SabCon, the sale represents a significant milestone as it transitions from founder-led management to becoming part of a larger organization capable of scaling operations while maintaining operational excellence in safety, reliability, and quality. The transaction aligns with MPE Partners' investment thesis targeting entrepreneur- and family-owned businesses within specific market segments.
Regulatory path
The acquisition required review by the Federal Trade Commission (FTC) due to its involvement in natural gas utility services and the geographic concentration in Florida. As of April 18, no details have been released about any regulatory remedies or timelines associated with the FTC review process. The transaction did not necessitate filings under the Hart-Scott-Rodino Antitrust Improvements Act (HSR) due to its undisclosed value, but it remains subject to routine antitrust scrutiny within the relevant jurisdiction.
Given SabCon's focus on natural gas utilities and MPE Partners' broader investment strategy in high-value manufacturing and commercial & industrial services, this acquisition underscores a strategic alignment between growth opportunities and regulatory landscape.