Atar Capital, a private investment firm based in Los Angeles, has successfully completed the sale of Frontier Integrity Solutions (FIS) through a management buyout. This transaction concludes a fruitful nine-year partnership that saw FIS evolve into a prominent provider of pipeline inspection and integrity services tailored for the midstream energy sector.
This management buyout not only ensures the continuity of FIS’s essential services but also positions both Atar Capital and FIS for future growth. Keyth Pengal, chief executive of FIS, expressed his enthusiasm for the transition, stating, “This transition represents an exciting new chapter for Frontier Integrity Solutions. As we enter this next phase, we’re committed to maintaining the integrity of North America’s critical pipeline infrastructure.”
Cyrus Nikou, founder and managing partner of Atar Capital, conveyed confidence in FIS’s future under management’s ownership. He highlighted the company’s significant contributions over the past nine years in safeguarding the critical infrastructure that powers the United States.
FIS’s Role in the Energy Sector
Headquartered in Tulsa, Oklahoma, FIS has established itself as a vital partner for major energy industry players. The company offers precision inspection services, detailed project tracking, and comprehensive quality assurance solutions. Since its acquisition from Furmanite America Inc. in December 2016, FIS has expanded its capabilities significantly. With nearly 800 certified inspectors and specialists, FIS is equipped with over 40 years of industry experience, solidifying its role in ensuring the safety and reliability of oil and gas pipeline infrastructure across the U.S.
Under Atar Capital’s stewardship, FIS has made notable operational enhancements. These improvements include the implementation of advanced tracking and compliance systems, expansion of its professional workforce, and strengthened relationships with key industry customers. These strategic initiatives have positioned FIS as an essential service provider in the midstream energy landscape.
Atar Capital’s Investment Strategy
Atar Capital is recognized for its extensive experience in private equity investments, having completed 90 transactions across 18 countries. The firm specializes in acquiring lower middle market businesses with significant growth potential. Their approach involves not only financial investment but also active participation in improving operations and overall performance. Atar Capital leverages the expertise of its leadership team and a network of seasoned advisors to drive value creation.
As both Atar Capital and FIS embark on their respective new phases, the management buyout signals a pivotal moment for both entities. The transition reflects a commitment to sustaining and enhancing the integrity of critical infrastructure, which is increasingly important in today’s energy landscape.
