26.06.2017

Brand Safway merger completes

Brand Energy & Infrastructure Services and scaffolding, access and industrial services group Safway have completed their merger.

The combined business, which will be known as Brand Industrial Services, will have revenues of $5 billion, with around 32,000 employees based at 350 locations over 30 countries.

In the USA the company will trade as BrandSafway, in Canada -AlumaSafway, Brand and Dalco. In international markets, existing brand names including Aluma Systems, Brand Energy & Infrastructure Services, Hünnebeck, and SGB, will remain.

Clayton, Dubilier & Rice which has owned brand since 2013, is the controlling shareholder of the merged company, while Odyssey Investment Partners which acquired Safway in 2009, has sold its shares. Operating partner John Krenicki, a director of Brand since 2013, becomes chairman of the merged company while Brand chief executive and chairman Paul Wood becomes chairman Emeritus and a senior advisor.

Safway chief executive Bill Hayes- takes over as the first chief executive of the merged business said: “This combination creates one integrated global specialised services organisation, with broad capabilities and reach, focused on delivering more value for our customers in the industrial, commercial and infrastructure end markets.”

“With our expanded capabilities, we are committed to providing our customers with the best possible services and solutions that are safer, more productive, and more cost-effective. Our goal will be to think globally and act and execute locally – large enough to have the expertise and resources to perform for our customers at the highest level, while at the same time small and nimble enough to deliver responsiveness through our global branch network, ensuring a local and personalized customer service experience.”

The rest of the senior management team will include: Jim Walters of Safway becomes chief financial officer, Dave Witsken becomes president, Energy & Industrial, Jeff Sprau - president, Commercial & Industrial, Glen Teel, president, Global Forming & Shoring.

Vertikal Comment

This is an interesting combination for the scaffold and suspended platform market. Safway owns suspended platform company Spider and from 1996 to 2009 was owned by Thyssen Krupp - as was Hünnebeck which was later acquired by Brand. The company also owns the SGB business which includes a substantial aerial lift rental business in the Netherlands.

The combination brings together two quite similar companies, while adding some new services that will enhance the range of services and products each entity can offer. Thanks to the similarity of the two operations there are likely to be a substantial amount of back room costs savings. Looks like a relatively sensible merger.