TRG | The Bottom Line – 10/18

TRG this week hosted our October Fireside Chat with Acuren, a leading provider of asset integrity services, providing mission critical, regulatory-mandated, non-destructive testing, inspection and engineering & lab testing services across a variety of industry end markets. Serving various North American industrial markets, including chemical, pipeline, and aerospace, Acuren focuses on recurring maintenance and compliance-mandated services for its customers. Admiral Acquisition Ltd (LSE: ADMR) signed a definitive agreement to acquire Acuren on 5/21/24 for $1.85B from American Securities. The deal closed 7/30/24, and by 8/19/24, Acuren (formerly known as Admiral Acquisition Ltd) delisted from the LSE, with the intention of shifting trading to the NYSE by late 2024/early 2025. Acuren, with one of the largest footprints in the industry and 130+ locations in the North Americas, has extensive exposure across various sectors. Its main piece of the pie remains on the industrial sector, including building materials, pipelines, rail, and more. Acuren’s services are mandated and a relatively smaller part of the overall cost. The company’s services are essential throughout the duration of an asset’s lifecycle with work performed mostly in the commissioning stage and then late stage to extend the life of assets. An asset light business model with low annual capex demands, Acuren is a solid generator of FCF.   With the building reindustrialization of the North American market, Acuren’s services are critical for the maintenance and extending the life of infrastructure underpinning this secular trend.