#United States #Baton Rouge #BCP #KBR Inc. #Brown & Root

BCP Sells Stake in Brown & Root Industrial Services

In a significant move within the industrial services sector, Bernhard Capital Partners (BCP) announced its decision to sell its stake in Brown & Root Industrial Services. This transaction, which underscores a successful decade-long partnership, reflects the evolving landscape of industrial services and the pivotal role that BCP has played in the growth of Brown & Root since its establishment in 2015.

Brown & Root Industrial Services, well-regarded for providing critical industrial solutions, has evolved significantly over the past decade. With a workforce of over 10,000 across 22 locations in the U.S., Mexico, and Canada, the company caters to major clients in the chemicals, energy, manufacturing, and government sectors. Notably, KBR, Inc., an investor in Brown & Root since its inception, will retain a significant stake in the company following the transaction.

BCP's involvement has been crucial in augmenting Brown & Root's capabilities and expanding its market presence. Since 2015, BCP has collaborated closely with Brown & Root's CEO Andy Dupuy and the management team to build upon the company's nearly 100-year legacy. Their joint mission has focused on innovation and reliability, key attributes that have solidified Brown & Root's status as a leading partner in the industrial services arena.

According to Dupuy, the journey together has been rewarding. He highlighted the vision and guidance from the BCP team as instrumental in enhancing Brown & Root's reputation as a dependable provider within the market. This phase of divestment represents not just an end, but a pivotal moment as the company is well-positioned to continue its growth trajectory independently.

Mark Spender, a Partner at BCP, reflected on the fruitful collaboration. He stated that the partnership with Brown & Root exemplifies BCP's strategy of backing world-class management teams and executing a shared vision for growth. The accomplishments from their collaboration have created significant value for investors and boosted Brown & Root's profile as a top-tier industrial service provider in North America.

While financial specifics of the sale have yet to be disclosed, the transaction is anticipated to finalize by late Q3 or early Q4 2025, contingent on customary closing conditions. As they move forward, both BCP and Brown & Root are geared toward leveraging their respective strengths to navigate future opportunities in an ever-evolving industrial landscape.

For additional context, BCP, established in 2013, maintains a strong portfolio focused on services and infrastructure, boasting assets exceeding $5 billion across multiple funds. The firm strives to foster sustainable value through strategic investment approaches. Brown & Root, with its storied history dating back to the early 1900s, is synonymous with excellence in the industrial services field, offering comprehensive solutions throughout every phase of project development.

Visit Brown & Root's website for more information regarding their industry offerings and legacy.

As we look ahead, the decision by BCP to divest from Brown & Root is a clear indicator of strategic repositioning within the sector, and it remains to be seen how both entities will thrive in their new trajectories.