MPE Partners and Precision Pipeline Services make major move with acquisition of Allegheny Contracting

MPE Partners (“MPE” or “Morgenthaler Private Equity”) and its portfolio company Precision Pipeline Services have announced the successful acquisition of Allegheny Contracting. This strategic acquisition marks a significant expansion into the natural gas utility services sector.

Allegheny Contracting, based in Ridgway, Pennsylvania, is renowned for its specialized technical services for the natural gas market. The company provides essential services including gas transmission pipeline integrity repairs, which are mandated by regulatory inspections, as well as the repair and replacement of underground gas distribution pipelines. This acquisition is designed to enhance MPE Partners and Precision Pipeline Services’ service capabilities and extend their reach across the Mid-Atlantic and Midwest regions.

Mark Crowson, Chief Executive Officer of Precision Pipeline Services, commented on the acquisition, stating, “Allegheny has firmly established itself as a leading natural gas utility service provider in Pennsylvania and the surrounding states. The company’s commitment to safety and quality, fostered by Brent Buehler, is exemplary. We are excited to join forces with the Allegheny team to support their continued success and growth.”

Brent Buehler, Founder and CEO of Allegheny Contracting, expressed his satisfaction with the new partnership, saying, “I am incredibly proud of what the Allegheny team has achieved over the past 25 years. Partnering with Precision, a company that shares our vision and has a proven track record, will enhance our ability to serve our customers and propel us into our next phase of growth.”

Constantine Elefter, Partner at MPE Partners, emphasized the strategic significance of the acquisition: “The integration of Allegheny with Precision, along with our previous acquisition of SabCon Underground, underscores our dedication to building a leading provider of critical underground services for a diverse utility customer base. We are pleased to welcome Brent and the Allegheny team to our organization.”

The acquisition was financed with the support of Churchill Asset Management and BMO Sponsor Finance, with legal advisory provided by Jones Day.

Allegheny Contracting, located in Ridgway, Pennsylvania, specializes in gas transmission pipeline integrity and underground gas distribution services. The company offers a comprehensive range of technical services, including hot tapping, stoppling, coating, welding, and composite wrapping.

Precision Pipeline Services, headquartered in Lancaster, Ohio, with additional offices in Columbus and Xenia, Ohio, delivers repair, replacement, and maintenance services across the gas, electrical, telecommunications, and water sectors. The company’s services include horizontal directional drilling, excavation, hydrovac operations, utility locating and verification, video camera line inspection, and GPS mapping.