Quanta Services Acquires Stronghold. Ltd.
In July, Quanta announced the acquisition of Stronghold for $548 million, expanding its capabilities into downstream markets. Stronghold offers turnaround and other downstream services, tank storage and other midstream services. The company specializes in high-pressure and high-reactor infrastructure services. Stronghold’s downstream services complement Quanta’s midstream services capabilities, and the acquisition provides a natural expansion for Quanta into the specialized industrial services market. “We remain positive on our 2017 and multiyear outlook and believe Stronghold is a strategic acquisition that will allow us to capture a greater portion of the energy industry operating and capital spend,” Duke Austin, president and CEO of Quanta Services, said in a July 21 press release. This transaction is evidence of the current trend of E&C firms in the domestic oil & gas market to move towards vertical integration.
Tri Con Works Acquires Diamondback Works
In August, Tri Con Works announced the acquisition of Diamondback Works for an undisclosed amount. Tri Con Works is a leading environmental services provider specializing in the construction and maintenance of landfill gas monitoring, collection and recovery systems, as well as leachate systems. Diamondback Works provides specialty construction services to the Petrochemical industry. The acquisition will enable Tri Con Works to expand its service offerings to become a leading provider of outsourced industrial and environmental services.
Diamondback Works was established in October of 2000 in order to provide, remodel/renovation services to the Petrochemical Industry. Over time, the Company added such service offerings as Steel Erection, Process Pipe Field Fabrication and Installation, Structural Foundations, and Design Build Services.
Gary Smith and Bryan Robbins, Co-Founders of Tri Con Works, said, “We are excited to partner with David Chovanec and his team at Diamondback Works. The partnership will create additional opportunities for employees and it will enhance our capabilities to service our customers as well as secure new customers.”
This acquisition is evidence of the current trend of industrial firms pursuing a competitive edge in the marketplace through service offering and capability differentiation.