ISS Strengthens Focus After Divesting Inspection Services
ISS Completes Sale of Its Inspection Services Segment
Industrial Service Solutions (ISS), a prominent player in the industrial MRO services sector, has successfully announced the divestment of its inspection services segment to Element Materials Technology. This strategic move allows ISS to concentrate on enhancing its core business operations, specifically in the rotating equipment domain.
Overview of ISS Inspection Services
ISS Inspection Services comprises four well-known brands: NIC Inspection Services, PTI Industries, PRO Inspection Services, and CTS Inspection Services. Each brand operates under rigorous standards and is recognized for its excellence in serving industries such as aerospace, defense, and energy. Together, these brands cater to nearly 1,000 clients, providing them with specialized services including non-destructive testing (NDT), precision cleaning, and coatings.
The ISS Team and Their Commitment
The talented team at ISS Inspection Services, approximately 300 skilled professionals, ensures that customers consistently receive top-notch service from multiple locations. With their collective experience and dedication, they've built lasting relationships within their client network.
CEO's Remarks on the Transition
Wade Stockstill, the CEO of ISS, expressed enthusiasm, stating, "With this sale, we are eager to pivot our efforts back toward our core offerings, particularly in our rotating equipment services. We extend our gratitude to the Inspection Services team for their unwavering dedication and exemplary customer service, wishing them well in their new chapter with Element." This change reflects a focused strategy on the key aspects of ISS's business model.
Wynnchurch Capital's Role in the Transaction
Wynnchurch Capital, the private equity firm backing ISS, has successfully guided numerous investment strategies ensuring growth. Recently, Wynnchurch has expanded its portfolio with the acquisition of ORS Nasco, a leading wholesaler of industrial MRO supplies. Their historical investments showcase an ongoing commitment to nurturing companies within the middle market, enhancing growth potentials through strategic mergers and acquisitions.
Recent Investments by Wynnchurch Capital
In addition to ORS Nasco, Wynnchurch has made notable investments in various sectors, including Hydraulic Technologies, which specializes in high-pressure hydraulic tools, and Reagent, a leading distributor of hydrochloric acid. Their keen eye for potential has established them as a major player among private equity firms.
About Industrial Service Solutions
Founded in 2011 and based in Houston, Texas, Industrial Service Solutions is dedicated to MRO services across diverse industrial sectors. Their regional facilities are fully equipped for the repair and maintenance of rotating equipment, ensuring high-quality service suited to various customer needs. With a commitment to excellence, they also provide design and engineering support, solidifying their reputation in the industry.
About Wynnchurch Capital
Founded in 1999, Wynnchurch Capital has evolved into a key middle-market private equity firm headquartered in Rosemont, Illinois. With $9.2 billion in regulatory assets under management, they focus on collaborating with companies that demonstrate strong growth potential. Their extensive approach includes recapitalizations and restructurings, delivering impactful results across invested businesses.
Frequently Asked Questions
What prompted ISS to sell its inspection services segment?
ISS decided to sell its inspection services segment to refocus on its core rotating equipment business and streamline its operational strategy.
Who acquired the ISS Inspection Services?
The ISS Inspection Services segment was acquired by Element Materials Technology, a leading provider in testing and inspection services.
How many brands are part of ISS Inspection Services?
ISS Inspection Services includes four brands: NIC Inspection Services, PTI Industries, PRO Inspection Services, and CTS Inspection Services.
What is the main focus of ISS after the sale?
After the sale, ISS is concentrating its growth efforts on enhancing its core business operations related to rotating equipment.
What role does Wynnchurch Capital play in ISS?
Wynnchurch Capital is the private equity firm behind ISS, supporting its growth strategies and investment decisions, including the recent sale of its inspection services segment.
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