One Equity Partners Enters into Agreement to Invest in Brown & Root Industrial Services
One Equity Partners ("OEP"), a middle market private equity firm, today announced it has agreed to make an investment in Brown & Root Industrial Services (the "Company"), a provider of non-discretionary, specialty industrial services. Existing investor KBR, Inc. (NYSE:KBR) will continue to own a significant stake in the Company.
Based in Baton Rouge, La., Brown & Root Industrial Services provides non-discretionary, specialty industrial services, with a focus on recurring industrial maintenance and turnaround services. The Company also offers services for construction, industrial engineering, soft craft (e.g. scaffolding, insulation) and other specialty services. The Company serves a blue-chip customer base across the chemicals and synthetics, energy, manufacturing and government segments and has over 10,000 employees and 22 locations across the U.S., with a core presence in Texas and the Gulf Coast region.
"Brown & Root Industrial Services is a trusted service provider for infrastructure maintenance and major capital expansion projects within the large North American industrial services sector," said Ante Kusurin, Partner at One Equity Partners. "As the market continues to benefit from structural tailwinds, the Company is well-positioned for growth. We see a plethora of opportunities to enhance capabilities, tap into adjacent markets, and expand our footprint in North America and around the world."
Favorable structural tailwinds are expected to support the North American industrial services market, with aging infrastructure and increased utilization driving demand for maintenance, modernization, and upgrade initiatives, and outsourcing by customers increasing due to heightened skilled labor shortages, rising equipment maintenance complexity, and an enhanced focus on cost efficiency.
"We are pleased to embark on this new partnership with One Equity Partners as we seek to continue growing our operations," said Andy Dupuy, CEO of Brown & Root Industrial Services. "OEP's industry expertise and experience executing transformational combinations will help build on our recent success and accelerate Brown & Root Industrial Services' growth trajectory."
"We are excited to partner with KBR, one of the world's leading companies in science, technology and engineering, aerospace, defense, industrial, intelligence, and energy industries," said Ante Kusurin, Partner at One Equity Partners. "Together with KBR and the Brown & Root Industrials Services management team, we aim to build a global OpEx industrial services platform that is better positioned to serve its blue-chip customer base and capitalize on long-term growth opportunities."
The transaction is expected to be completed in late Q3 or early Q4 2025, subject to customary closing conditions and approvals. Financial terms of the transaction were not disclosed.
Sidley Austin LLP provided legal counsel, KPMG LLP provided financial advice, Guggenheim Securities, LLC provided financial advisory services and Arnovia LP provided commercial advice to OEP.
KBR was advised by Baker McKenzie.
About One Equity Partners
One Equity Partners ("OEP") is a middle market private equity firm focused on the industrial, healthcare, and technology sectors in North America and Europe. The firm seeks to build market-leading companies by identifying and executing transformative business combinations. OEP is a trusted partner with a differentiated investment process, a broad and senior team, and an established track record generating long-term value for its partners. Since 2001, the firm has completed more than 400 transactions worldwide. OEP, founded in 2001, spun out of JP Morgan in 2015. The firm has offices in New York, Chicago, Frankfurt and Amsterdam. For more information, please visit www.oneequity.com.
About Brown & Root Industrial Services
Brown & Root Industrial Services has been in the industry since the early 1900's and built a legacy synonymous with excellence in providing full-service solutions for every project phase of industrial facilities across the globe. Brown & Root Industrial Services offers a full range of industrial services in industrial engineering, construction, maintenance, turnarounds, soft crafts, and specialty services. Led by a core leadership team with many years of valuable experience and a singular focus on customer service, Brown & Root Industrial Services works with companies in the downstream, refining, petrochemical, chemical, pulp and paper, alternative fuels, clean energy, and manufacturing industries to execute projects, solve challenges and achieve success. Learn more at www.brownandroot.com.
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