Global investment firm Investcorp has announced the successful sale of its stake in RESA Power, a leading provider of electrical testing, transformer services, and life extension solutions for power distribution equipment, to Kohlberg. This transaction marks the first successful exit for Investcorp’s North American Private Equity Fund I.
Investcorp, which acquired RESA Power in 2021, has played a key role in the company’s remarkable growth, helping to quadruple its revenue and expand its operations across North America. The sale comes after a period of strategic mergers and acquisitions, which significantly broadened RESA’s service offerings and geographical presence.
RESA’s Growth Under Investcorp’s Ownership
Since Investcorp’s initial investment, RESA Power has experienced significant revenue growth, increasing its revenue more than fourfold. The company now serves thousands of commercial and industrial clients, utilities, and data centers across 14 states and provinces in North America. RESA’s growth trajectory was driven by an enhanced national accounts strategy and the completion of 14 strategic acquisitions, which expanded the company’s service portfolio and geographical reach.
A key element in RESA’s success was the introduction of an employee ownership programme, making it the first in the electrical power industry to grant equity to all eligible employees. This initiative, which has contributed to a reduction in employee turnover by over 10%, allowed employees to benefit directly from the company’s growth and success.
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Investcorp’s global head of distribution, Yusef Al Yusef, expressed his satisfaction with the sale, calling it a “tremendous outcome” for investors. Al Yusef noted that the sale validated Investcorp’s investment strategy, particularly the focus on growing industrial services businesses through digitization, strategic mergers and acquisitions, and talent development. “The RESA team fully embraced our vision and is well positioned for continued success,” he said.
Digital Transformation and M&A Success
One of the defining features of RESA’s growth under Investcorp’s ownership was its digital transformation. The company introduced AI-driven tools such as Power Pulse, which enabled advanced asset maintenance monitoring. This digital initiative helped RESA stay ahead of the competition and provide enhanced services to its clients.
RESA Power’s CEO, Scott Harrison, acknowledged Investcorp’s critical role in guiding the company’s development. He praised the firm as a “value-added partner” from the beginning, emphasizing their collaboration in establishing a foundation for RESA’s digital strategy and successful M&A initiatives. These efforts played a key role in accelerating the company’s value creation plan and driving its expansion across the North American market.
Investcorp’s Strategic Focus on North America
Investcorp’s sale of RESA Power underscores its successful strategy in the U.S. market, which has been a core focus of the firm since 2015. Mohammed Alardhi, Investcorp’s executive chairman, highlighted the firm’s expertise in U.S. private markets, noting that the firm’s focus on industrial services and digitization had delivered outstanding results. “This success validates our investment strategy and the talent of our team. We aim to continue this globally across our private equity business,” Alardhi said.
Since its acquisition of RESA, Investcorp’s North American Private Equity Fund I has not only reaped substantial financial returns but also helped position the company for continued growth and success in the evolving energy sector. The sale to Kohlberg marks a successful exit for the investment firm, which remains committed to driving value creation through targeted investments in key markets.
As Investcorp moves forward, the firm continues to seek new opportunities in the U.S. and globally, focusing on expanding its portfolio of industrial services businesses and capitalizing on the ongoing digital transformation of key sectors.
Conclusion
The sale of RESA Power represents a significant milestone for Investcorp, showcasing its successful investment strategy in the North American market. Through strategic acquisitions, a focus on digital transformation, and a strong employee engagement initiative, RESA has been able to achieve impressive growth. With the successful exit now complete, both Investcorp and Kohlberg are poised to capitalize on the company’s momentum and look ahead to further opportunities in the industrial services and energy sectors.
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