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Strength Capital Completes Sale of Inland Pipe Rehabilitation LLC

Birmingham-based Strength Capital Partners, LLC is pleased to announce the sale of Inland Pipe Rehabilitation LLC (“IPR”) to J.F. Lehman & Company, a leading middle-market private equity firm with offices in New York and Washington, D.C.

Inland Pipe Rehabilitation is a leading provider of trenchless pipe rehabilitation solutions and technology to the municipal wastewater and stormwater markets.  The Company’s technologies and services provide government customers with minimally disruptive, cost effective solutions to manage aging underground pipe infrastructure in almost any location in its target markets. 

Strength Capital acquired Inland Pipe Rehabilitation in 2005.  At that time the business was combined with Inland Industrial Services, which was split off in 2007 and successfully sold in 2013. 

Strength Capital grew Inland Pipe Rehabilitation through a combination of seven add-on acquisitions and significant organic growth.  Using this strategy, the Company was able to grow from a localized operation with significant customer concentration to a well-diversified, national platform with 19 locations.

Strength Capital has sold portfolio companies with over $1.0 billion of total enterprise value.  Over $750 million of that enterprise value has been related to Strength Capital’s core industrial consolidation strategy. Inland Pipe Rehabilitation is another successful realization of this strategy, whereby Strength Capital acquires a platform company and executes add-on acquisitions to grow and strengthen the business through the diversification of the customer base, product lines, and geographic reach.

Strength Capital is a middle and lower market private equity firm investing in businesses with $2 - $20 million in EBITDA.  The Company was founded in Birmingham, MI by Managing Partners Mark McCammon and Mike Bergeron in 2000.  Over the years Strength has expanded from a two-man operation to a nine-person team operating out of offices in Birmingham, MI, Cincinnati, OH and Denver, CO.  Since inception, Strength has invested $450 million in equity across 23 platform companies and 40 add-on acquisitions.

Houlihan Lokey served as financial advisor to IPR and Jaffe Raitt Heuer & Weiss provided legal counsel.

Read the full story in Crain’s Detroit Business

Steve Stefanko