Pike adapts utility systems as demand rises and extreme weather tests US power infrastructure
A new partnership between TPG and La Caisse (formerly CDPQ) is moving to acquire a majority interest in Pike Corporation, a national provider of turnkey engineering and construction solutions for the electrical grid.
TPG is investing through its TPG Rise Climate platform, with La Caisse taking a significant minority stake.
Pike’s chairman, J. Eric Pike, and CEO, James R. Wyche, are investing alongside TPG and La Caisse, together with other existing investors.
The transaction will see Wyche and the current management team, with a combined tenure of over 200 years at Pike, continue to lead the company. Pike will remain on the Board of Directors.
Terms of the deal have not been disclosed.
Founded in 1945, Pike Corporation employs approximately 12,000 people and serves more than 400 customers.
The company’s services include construction and engineering for electric distribution, transmission and substation, renewables and distributed energy resources, and telecommunications.
J. Eric Pike said that Pike’s history as a family-founded company has focused on safety, integrity, and solutions.
He attributed the company’s progress to the team, long-term customers, and investor support.
Jonathan Garfinkel, managing partner of TPG Rise Climate, said Pike is positioned to help utilities adapt, modernize, and strengthen their systems as the US power grid faces rising demand, aging infrastructure, and increased exposure to extreme weather.
Elizabeth Stone Redding of TPG Rise Climate stated that there is a long-term growth opportunity for grid services providers in the US.
She said TPG plans to work with the Pike team to advance grid resilience and energy reliability.
Martin Longchamps, executive vice-president and head of private equity and private credit at La Caisse, said that La Caisse, with significant investments in the power and energy sector, recognizes the role of service providers like Pike in maintaining grid reliability and resilience.
Longchamps said La Caisse and TPG are investing in Pike’s growth as it supports the country’s energy network.
Moelis & Company LLC is acting as financial advisor and Ropes & Gray LLP as financing counsel to TPG. Morgan Stanley & Co. LLC is acting as Pike’s financial advisor.
