Sparus Holdings Makes Investment in Pipeline Corrosion Industry with Purchase of JW’s Pipeline Integrity Services
Harvey & Company initiated the add-on of JW’s Pipeline Integrity Services, LLC to Sparus Holdings, Inc. Below is the press release following the transaction:
Sparus Holdings Makes Investment in Pipeline Corrosion Industry with Purchase of JW’s Pipeline Integrity Services
March 29, 2012
Atlanta, GA – Private equity-owned Sparus Holdings, Inc., which includes wholly-owned subsidiary Southern Cross Corporation, announced the acquisition of JW’s Pipeline Integrity Services, LLC, which specializes in providing corrosion inspection and pipeline integrity services to operators of oil and gas pipelines. JW’s workforce utilizes a wide range of external corrosion direct assessment (ECDA) tools and technologies to identify and locate areas of concern on a pipeline as part of an operator?s overall safety program. These outsourced services help manage risk of corrosion failures while minimizing the cost required for excavations and repairs. Texas-based JW’s was founded in 2004 and has grown rapidly with field offices in eight states. JW’s joins Sparus Holdings’ three primary subsidiaries together serving the utility, transmission and power industries including Southern Cross, which employs a workforce of more than 375 field technicians who perform pipeline safety surveys and inspection services to natural gas and electric utilities.
JW’s identifies areas of corrosion activity and coating defects through Indirect Inspection by using a combination of several above ground techniques including: Pipeline Current Attenuation Surveys, GPS and Close Interval Surveys, Soil Resistivity Surveys, among others. Upon identification of pipeline issues from these above ground survey techniques, JW’s then can conduct Direct (on-the-pipe) or Bell Hole Examinations which involve the physical identification of defects requiring repair or replacement. JW’s Post Assessment work involves detailed analysis and a comprehensive compliance report evaluating the proceeding steps of the ECDA process and establishing a future assessment schedule. This report will include: Root Cause Analysis, Active vs. Inactive Corrosion, Coating Thickness Measurements, Soil and Water PH Measurements, among others.
“U.S. Pipelines stretch more than 2.5 million miles across the country with about 80 percent used for gas distribution,” said Sean Durkin, President of Southern Cross Corporation. “Recognizing that a large percentage of pipelines are more than 60 years old, there is a significant opportunity for Southern Cross and JW’s to provide pipeline integrity services including cathodic protection and corrosion-related services to the industry as a whole. Together we are poised to broadly penetrate the pipeline corrosion market and expect to make an immediate impact and offer significantly more solutions. With the addition of founder and President Jim Walton’s expertise and the quality workforce of JW’s, we are one step closer to becoming the leading provider of outsourced, safety-driven utility services.”
“Pipeline incidents can be caused by a number of factors including corrosion, equipment failure, damage from excavations, incorrect operation, and natural forces,” said Jim Walton, founder and CEO of JW’s Pipeline Integrity Services. “As experts in this field and in light of the growing attention utilities are paying to issues related to corrosion, we are delighted to become a part of the Sparus group of companies and look forward to working in tandem with Southern Cross, a company well-known and respected in the industry. This new business combination will afford us the scale, capital and commitment needed to deliver more services to our customers with an emphasis on safety and quality.”
For more information about JW’s Pipeline Integrity Services, visit www.jwspiservices.com or call (972) 755-2633.
About Sparus Holdings
Sparus Holdings is a holding company serving the utility, transmission and power industries and is headquartered in Atlanta, Georgia. Sparus? Wholly-owned subsidiaries include Southern Cross, JW?s Pipeline Integrity Services, EZTech and The Spear Group.
www.sparusholdings.com
About JW’s Pipeline Integrity Services
JW’s specializes in providing corrosion inspection and pipeline integrity services to operators of oil and gas pipelines.
www.jwspiservices.com
