Swiss private equity firm Partners Group has snapped up ROSEN Group, which provides inspection services for energy infrastructure assets, from its founder, Hermann Rosen.
IPE Real Assets understands that Hermann Rosen will retain a minority stake in the business, which has an enterprise value of just over $2.5bn (€2.3bn), to help support its next phase of growth
Headquartered in Switzerland, ROSEN provides recurring, regulatory-driven inspection and integrity management services for energy transmission pipelines. The company operates from 25 locations across more than 120 countries.
Partners Group said it will work with management to leverage ROSEN’s existing capabilities to expand into future energy sources, including new energy transition opportunities such as hydrogen transportation pipes, as well as into adjacent markets.
Charles Miller-Jones, managing director, Partners Group, said: “ROSEN represents an opportunity to acquire a vertically integrated technology leader in the specialist sub-sector of asset integrity services that exhibits resilient demand. The company has strong recurring revenues from a large, diverse, and regulated asset base.”
Miller-Jones added that ROSEN is “well-positioned to capitalise on the tailwinds in the sector”.
The private equity firm said it has been following the broader ”testing, inspection and certification theme” for several years and had identified ROSEN “as a highly attractive company in the space benefiting from non-discretionary, regulatory-driven growth and an increasing focus of pipeline operators on safety and limiting harm to the environment from leaks”
Hermann Rosen said: “I have always seen ROSEN from the perspective of a founder. This includes considering my own succession at the right time. After intensive examination of various strategic options, I am excited that we have found the ideal co-owner in Partners Group to continue ROSEN’s unique success story.”
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