First Reserves Announces Sale of IRISNDT to Apave Group

Positions IRISNDT To Build on Momentum Developed Alongside First Reserve and Execute Its Growth Strategy as a Leader in the Testing, Inspection, Certification & Compliance (“TICC”) Sector

HOUSTON, Oct. 23, 2024 /PRNewswire/ — First Reserve, a leading global private equity investment firm focused on investing across energy, utility, and general industrial end-markets, today announced the sale of IRISNDT (the “Company”), a company specializing in non-destructive testing (“NDT”) and inspection with a presence in the United States, Canada, the United Kingdom, and Australia, to Apave Group. Financial terms of the transaction were not disclosed.

Founded in 1953, IRISNDT provides NDT and inspection services to a wide range of end-markets including critical processing infrastructure, general industrial applications, renewables, LNG, and biofuels. These services are mainly carried out on customers’ sites, giving them access to technical expertise to manage the risks on their sites and guarantee the safety of their production.

In 2019, the Company partnered with First Reserve to implement a shared value creation strategy to capitalize on key growth trends, including accelerating demand for inspection, testing, and maintenance services driven by aging infrastructure and more stringent regulatory requirements. Since then, IRISNDT has successfully executed its growth strategy, including more than 50% growth in its employee base and revenues, while simultaneously growing earnings. During this period, IRISNDT successfully completed nine acquisitions to accelerate growth into new end-markets and geographies. The IRISNDT management team will continue to execute on its next phase of growth with Apave.

“We are delighted to have reached this agreement with First Reserve to acquire IRISNDT. I would like to welcome the IRISNDT teams, who, like Apave’s 14,000 employees, share our strong values and the expertise that enables us to support our industrial customers in managing the risks associated with their activities and their own transformation. Our strengthened geographical footprint means that we can now support our customers even more actively and proactively, anywhere in the world. We have great synergies to develop and implement, and I’m confident in our ability to succeed,” says Philippe Maillard, CEO of the Apave Group.

“Our people are our most important asset; we are growing fast and our competence to deploy digital transformation tools delivers extraordinary benefits to our customers and employees. Growth creates opportunities for our employees, and we have found a great partner in Apave who shares the entrepreneurial culture of IRISNDT, where our young leaders, Operations Managers and Operations Directors are supported to build a successful business. We look forward to joining forces with Apave,” says Chris Weyers, IRISNDT CEO.

Jeff Quake and Gary Reaves, Managing Partners at First Reserve, commented, “We are pleased to have partnered with an exceptional management team to accelerate the growth of IRISNDT as a first-class provider of non-destructive testing services for essential infrastructure. IRISNDT is well-positioned to continue to execute its growth strategy as a leader in the space with a strong strategic partner in Apave Group.”

Stifel Financial Corp. served as financial advisor, and Gray Reed LLP served as legal counsel for IRISNDT.

About IRISNDT

IRISNDT is a privately-owned NDT, Inspection, and Integrity Engineering company with operations in the United States, Canada, the United Kingdom, and Australia. The company serves a blue-chip customer base in a wide range of end-markets including critical processing infrastructure, general industrial applications, renewables, LNG, and biofuels around ongoing operational activities and maintenance turnaround projects. For more information, visit www.irisndt.com.

About First Reserve

First Reserve is a leading global private equity firm investing across diversified energy, utility, and industrial end-markets. Founded in 1983, First Reserve has more than 40 years of industry insight and has cultivated a differentiated network of global relationships. The firm has raised over $34 billion of aggregate capital and has developed operational expertise built from over 750 transactions, including platform investments and add-on acquisitions. For more information, visit www.firstreserve.com.

About Apave Group

Apave is an international group with over 150 years of experience in technical, human, environmental and digital risk management. An independent company with a turnover of €1.2 billion in 2023, Apave currently has 14,000 employees, 130 branches in France, 170 training sites in France and abroad and 18 test centres. Apave has an international presence in more than 55 countries. Nearly 500,000 customers already place their trust in Apave in France and abroad. For more information, visit www.apave.com.

Contacts

Erik Carlson / Madeline Jones

Joele Frank, Wilkinson Brimmer Katcher

212.355.4449

[email protected]

SOURCE First Reserve