The Business

Westcon Incorporated (www.westconindustries.com) is a Bismarck, North Dakota-based diversified industrial construction company that provides a comprehensive range of construction services to large industrial processing facilities located throughout the United States. Westcon specializes in construction services for a diverse group of owners and operators of industrial facilities, including oil and gas, petrochemical, power generation, agriculture and food processing, biofuels and specialty chemicals, among others. Westcon had annual revenues of approximately $180 million in 2011.

The Industry

North Dakota is the second largest and fastest growing oil producing state in the United States. This growth is primarily driven by the exploration and development of the Bakken Shale, one of the largest oil field and natural gas reserves in the U.S. Over the last decade, U.S. shale gas production has increased twelve-fold and now accounts for approximately 25% of total U.S. production. Led by new applications of hydraulic fracturing technology and horizontal drilling, development of new sources of shale gas has led to major increases in reserves of U.S. natural gas. To support this growth, over $200 billion of midstream oil and gas infrastructure capital investments will be required to accommodate new natural gas supplies and meet growing demand.

The Process

Prestwick Partners initiated this transaction and acted as exclusive financial advisor to Westcon (Bismarck, North Dakota) and its private equity shareholders, Argenta Partners (Dallas, Texas) and Progress Equity Partners (Dallas, Texas and Denver, Colorado). Prestwick designed an M&A process, prepared marketing materials, evaluated acquisition proposals and negotiated the transaction with Bilfinger Berger SE (XETRA: GBF), a Mannheim, Germany-based international engineering and services company. Prestwick’s process included both domestic and international strategic acquirers.  This is the second time Prestwick has represented Westcon in a transaction, and the fourth and third time that Prestwick has been engaged by Argenta and Progress Equity, respectively.