Blackstone announced that funds managed by Blackstone Energy Transition Partners have entered into a definitive agreement to acquire Dresser Utility Solutions from First Reserve. Financial terms of the transaction were not disclosed.
Dresser is a Houston-based provider of mission-critical natural gas and water measurement, control, and infrastructure equipment solutions. The company serves gas and water utilities and industrial customers that depend on reliable infrastructure technologies.
Founded in 1880, Dresser provides metering technology, digital instrumentation and software, pressure and flow control solutions, and infrastructure repair products. The company has about 850 employees across its global manufacturing footprint.
Blackstone said Dresser helps customers modernize aging utility infrastructure and improve asset reliability. Its products support the safe and reliable operation of gas and water networks at a time when demands on energy and utility infrastructure continue to grow.
The transaction represents the first investment from the most recent vintage of Blackstone’s private equity energy transition vehicle. Blackstone Energy Transition Partners focuses on control-oriented equity investments in energy-related businesses.
Dresser’s portfolio supports the full utility infrastructure lifecycle, from measurement and control to repair and maintenance. The company’s technologies are designed to help customers operate safely, reduce emissions and product loss, and minimize operational costs.
Dresser said Blackstone’s resources and utility-sector experience make the firm a strong partner for its next phase of growth. The company plans to continue investing in innovation, expanding its product portfolio, and delivering additional value for customers.
First Reserve said it partnered with Dresser to build an infrastructure technology platform that helps utilities optimize assets and manage digital transformation. The firm said Dresser is well positioned to continue executing its growth strategy.
The transaction is subject to customary closing conditions. D.A. Davidson and Jefferies acted as financial advisors to Blackstone, and Kirkland & Ellis served as legal advisor.
Harris Williams served as financial advisor to Dresser. Simpson Thacher & Bartlett served as legal advisor to Dresser.
KEY QUOTES:
“As demands on the energy grid continue to grow, Dresser plays a critical role as a trusted partner to utilities managing essential infrastructure. The company’s products are foundational to the safe and reliable operation of gas and water networks, and its reputation for quality has helped build longstanding customer relationships. We look forward to leveraging Blackstone’s scale and resources to help Dresser continue to serve its customers, innovate and grow.”
David Foley, Global Head of Blackstone Energy Transition Partners, and JP Munfa, Senior Managing Director
“This transaction marks an exciting milestone for Dresser and reflects the exceptional work of our entire team. Blackstone’s deep resources and experience in the utility sector make them an ideal partner as we continue to invest in innovation, expand our product portfolio, and deliver value for our customers. We are energized by what lies ahead and are grateful to First Reserve for their invaluable partnership in helping build Dresser into the company it is today.”
David Evans, CEO of Dresser Utility Solutions
“We’re grateful to have partnered with the Dresser team to build a leading infrastructure technology platform helping utilities optimize assets and manage the digital transformation process. Dresser is well-positioned to continue the execution of its growth strategy and we wish David Evans and the entire team well as they look to build on the company’s momentum in this exciting new chapter.”
Jeff Quake, Managing Partner at First Reserve
