3 Rivers Capital has sold System Integrity, a division of Aptus Group USA, to Magnolia River, a portfolio company of Warren Equity Partners

Aptus Group USA

Headquartered in Charlotte, North Carolina, Aptus Group USA, LLC is a leading turnkey provider of highly specialized maintenance, repair, inspection, planning and installation services for bridge-attached gas line, utility conduit, water main and drainage system infrastructure. Aptus operates through two divisions – the system integrity division (SI) and the infrastructure division. SI provides outsourced inspection, remediation and decommissioning services for on-bridge natural gas distribution infrastructure operated by utilities across the United States.

The Deal

Following 3 Rivers Capital’s investment in 2019, Aptus successfully executed on a series of initiatives to extend the company’s geographic reach, institutionalize best operational practices, enhance systems and strengthen the management team. The acquisition of SI is highly strategic as it will expand Magnolia River’s service offerings, client base and geographic footprint. As part of this transaction, Aptus’ shareholders will retain the company’s infrastructure division.

Our Perspective

Saurin Mehta, Managing Director and co-head of Lincoln’s Business Services Group who leads the firm’s infrastructure, utility and industrial services practice, commented, “SI’s differentiated value proposition is well positioned to capitalize on multiple industry tailwinds. These dynamics include aging gas distribution infrastructure; stricter regulations governing the compliance, inspection and remediation of gas infrastructure; and utilities outsourcing more work to third-party service partners. Combined, these trends will underpin long-term, non-discretionary demand for market leaders like SI. Magnolia River is a great home for SI and will help further accelerate the business’ growth trajectory.”

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