Clearlake Capital Acquires Power Solutions Firm Qualus

Clearlake Capital Group has finalized its acquisition of Qualus Corporation, a significant move that positions the private equity firm at the forefront of the rapidly evolving electric power infrastructure sector. This transaction brings a specialized, end-to-end power solutions provider under Clearlake's ownership, bolstering its portfolio in essential services that benefit from sustained, long-term demand trends. The financial specifics of the deal were not publicly disclosed.

Qualus operates as a critical partner for major investor-owned utilities across the United States and Canada, alongside a distinguished roster of commercial, industrial, and high-tech clients. The company offers a comprehensive suite of services designed to navigate the complexities of modern power grids. These include strategic advisory, intricate engineering, robust program management, advanced digital solutions, energy efficiency initiatives, and specialized field services, covering the entire lifecycle of power infrastructure development and maintenance.

The acquisition aligns perfectly with Clearlake's investment thesis, which emphasizes businesses integral to economic function and undergoing significant transformation. Qualus is particularly adept at assisting clients in modernizing their electrical grids, managing increasing system complexity, enhancing grid resilience against disruptions, and meeting the escalating power demands driven by widespread economic electrification. This includes addressing challenges related to integrating distributed and variable energy resources, sophisticated emergency response planning, and ensuring secure data exchange within critical infrastructure.

New Mountain Capital, the previous owner of Qualus, is recognized for its business-building approach across various investment strategies. Their stewardship of Qualus focused on fostering growth within the power solutions domain. The transaction saw significant advisory support, with AEC Advisors acting as the lead financial advisor to Qualus and New Mountain Capital. Harris Williams also provided co-financial advisory services. On Clearlake's side, a consortium of financial advisors including Goldman Sachs, Houlihan Lokey, Perella Weinberg Partners, and Stifel were involved. The financing for the acquisition was arranged by Apollo, Goldman Sachs Alternatives, and Clearlake itself.

The strategic importance of Qualus lies in its deep technical expertise and its ability to deliver innovative solutions for the power industry's most pressing issues. As the energy sector pivots towards greater sustainability and reliability, companies like Qualus are indispensable. Their dual role in providing both consulting services and technology-enabled solutions places them strategically across the value chain, from initial planning to ongoing operational support.

Clearlake Capital, established in 2006, manages over $185 billion in assets and employs a distinctive operational approach, termed O.P.S. (Operations, People, Strategy), to drive value creation. This hands-on methodology, combined with patient capital, aims to foster long-term growth in its portfolio companies. The addition of Qualus to its portfolio underscores Clearlake's commitment to sectors experiencing fundamental shifts and requiring specialized expertise.