04.02.2015

NCSG acquires Energy Crane

Canadian based crane group NCSG Crane & Heavy Haul has acquired 100 percent of the equity of Energy Transportation of Wyoming, which also trades as Energy Crane and Rigging.

NCSG will assume the ongoing operations of the business, including brand names, existing staff, customer and other contracts, leases to the facilities and the working capital of the business, while the cranes and equipment will be sold off separately. Transportation's owner Dan McGlade will continue to be an owner in the business through the purchase of a stake in NCSG as part of the transaction.

Energy Transportation was founded in Casper, Wyoming, in 1983 by McGlade and is the largest supplier of fully operated crane services, specialised rigging, and heavy haulage in the state of Wyoming and a leading supplier in Montana, Colorado, Texas, New Mexico and adjacent states. The company has over 100 Master Service Agreements in place with key customers in the refining, wind, oil & gas, mining and heavy industry markets. It operates a fleet of All Terrain, truck, and crawler cranes up to 600 tonnes.
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McGlade’s rationale in merging his business with NCSG is to realise part of the value he has built up in the business, while retaining a stake in the business. As part of the deal he is independently selling off the crane and trucking equipment previously owned by the business. NCSG is replacing that equipment by moving in machines from its existing 20 branch network and buying replacement equipment as necessary, in order to service the ongoing customer base.

Ted Redmond, president of NCSG said: “Energy Transportation has a proud history of providing great service to its many customers in the Western U.S. and we will continue on with that tradition. Dan McGlade has built a great business and management team and we are thrilled to partner with this team to provide crane, speciality rigging and heavy haul services to Energy Transportation’s existing customers. With the current price of oil, we expect that going forward we could have lower utilization in our fleet and as such moving equipment into Energy Transportation’s market only makes sense.”

McGlade added: “I plan to continue to oversee the business, and the existing Energy Transportation team will continue to provide our long term customers with industry leading service. With access to NCSG’s team of 700 employees and fleet of over 295 cranes, 235 lines of hydraulic platform trailers and other equipment, we will be able to take on even larger projects/maintenance jobs and meet even more of our customers' needs.”

“This transaction reflects the continued implementation of our North/South Energy Corridor strategy and grows our U.S. presence to over 200 employees and 10 branches,” said Martin Inglehart, vice president of U.S. operations for NCSG. “We expect to achieve significant operating benefits from our expanded network of branches. We will have all sizes and types of cranes and trucks/trailers within an easy reach of our customer’s facilities.”

Since last year NCSG has been majority owned by two private equity firms, Calgary-based TriWest Capital Partners and the $10-billion Alberta Teachers’ Retirement Fund, while the previous owner Seattle-based Northwest Capital Appreciation, remains a significant investor. It has been back on the acquisition trail since September 2014, when it acquired Calgary-based, Tucker Oilfield Hauling, See NCSG back on the acquisition trail followed by H&H Crane Service of Great Falls, Montana in November. See NCSG takes H&H.