Mensura Advises on Strategic Sale of Tri-State Painting, Inc.

Mensura Advises on Sales Strategy for Tri-State Painting, Inc.

Mensura Capital, LLC ("Mensura") has recently announced its role in the advisory capacity for Tri-State Painting, Inc. ("TSI" or the "Company") in its successful sale to Muehlhan Surface Protection, Inc., the renowned US subsidiary of Muehlhan Holding GmbH. This strategic move aligns TSI with Muehlhan’s Industrial Services Group, enhancing TSI's capabilities while being led by its current management team. The sale's financial specifics were kept confidential, but the implications are significant for both parties.

Tri-State Painting: A Historical Overview

Founded in 1978, TSI has transformed over the years from a specialized bridge painting company into a comprehensive industrial and infrastructure service provider. Its extensive range of offerings includes access and containment solutions, surface preparation, specialized metalizing, and various painting services. TSI has built a reputable clientele, encompassing government entities such as Departments of Transportation, prime contractors, and industrial facility operators, along with affiliations with the International Union of Painters and Allied Trades, ensuring access to a skilled workforce across the nation.

The Role of Muehlhan in the Industry

On the other hand, Muehlhan, with its origins dating back to 1881, is recognized for its robust technological capabilities and comprehensive service offerings. The company operates in several significant sectors including maritime, renewable energy, and industrial infrastructure. The product portfolio is broad, featuring services such as surface treatments, maintenance, welding, mechanical insulation, and passive fire protection, all tailored meticulously by skilled professionals to suit various project complexities. Notably, Muehlhan prides itself on being the leading surface protection and coatings provider in Europe.

Support from One Equity Partners

Muehlhan’s competence is further strengthened by its backing from One Equity Partners ("OEP"), a middle market private equity firm with intense focus on industrial sectors in both North America and Europe. OEP's extensive experience in managing industrial services enterprises emphasizes their capability to further elevate Muehlhan’s market position and operational efficacy.

Why Mensura Recommended Muehlhan

Mensura recommended Muehlhan due to its strategic expansion aspirations in the U.S. and its executive leadership's proven track record. The collaboration between Muehlhan and OEP brings forth a robust resource base that promises growth for TSI. Mensura detailed that the overall execution of the transaction was handled with forthrightness and efficiency, which is critical in such significant corporate maneuvers.

Mensura's Expertise in M&A Processes

As an investment banking entity aiming to serve the maritime and related industries, Mensura utilizes a comprehensive mergers and acquisitions (M&A) management framework that allows its clients to compete effectively with institutional market players. They prioritize creating tailored, controlled, and exclusive processes, which allow for optimal pairing between clients and potential buyers or investors. This approach not only enhances M&A outcomes but also assists clients in realizing substantial value during transactions.

The philosophy behind Mensura’s operation is rooted in the principle of measured risk, assuring that value is achieved while minimizing transactional risks through swifty managed processes. Their high rate of success exemplifies their competence in ushering transformational wealth for their clients, crafting pathways to sustainable growth and development.

Legal Aspects of the Transaction

The sale saw legal counsel provided to both parties involved. Sheppard, Mullin, Richter & Hampton LLP represented TSI, while Gravel & Shea PC offered legal advice to Muehlhan. This guidance ensured compliance and professional integrity throughout the transaction process.

Final Thoughts on the Alliance

This alliance stands as a testimony to the evolving landscape of industrial services, showcasing how strategic partnerships can unlock new opportunities and empower businesses to navigate complex market dynamics. The integration of Tri-State Painting with Muehlhan Surface Protection signifies a forward-thinking approach aimed at delivering heightened value to clients and stakeholders alike.

Frequently Asked Questions

What prompted Mensura to advise Tri-State Painting, Inc.?

Mensura identified Muehlhan’s strategic goals for U.S. expansion and their capability to enhance TSI's operational strength as key reasons for their advisory role.

How will TSI's operations change following the acquisition?

TSI will continue to operate under its existing management while benefiting from Muehlhan’s resources and market presence, leading to enhanced operational capabilities.

What is the significance of Muehlhan's backing by One Equity Partners?

OEP's investment brings not only additional capital but also extensive industry expertise, providing Muehlhan with a competitive edge in expanding its services.

How is Mensura positioned in the market?

Mensura serves as a specialized investment bank focused on maritime and related industries, utilizing tailored M&A processes to achieve positive outcomes for their clients.

What can we expect in the future from the partnership of TSI and Muehlhan?

The partnership is expected to yield enhanced service offerings and operational efficiency, unlocking new avenues for growth in the industrial services sector.

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