Apollo acquires majority in utility services firm PGS

HARTSELLE, Ala. - Apollo Global Management Inc. (NYSE:APO), an $82 billion market cap alternative asset manager currently trading at $143.45, has reached an agreement to acquire a majority stake in PowerGrid Services (PGS), a key player in the U.S. electric utility maintenance and construction sector. The deal, which involves funds managed by Apollo and affiliates, is aimed at bolstering PGS’s growth as it addresses the increasing demand for power and grid improvements across the country.

PowerGrid Services, with over 1,400 in-house professionals and a vast vendor network, offers comprehensive services including construction, maintenance, and emergency response for electric utilities. The company’s operations span more than 35 states, emphasizing a safety-first approach and reliability in grid modernization and resilience.

Apollo’s partnership with PGS’s existing investors, including company management and The Sterling Group, is expected to enhance PGS’s service capabilities and support its expansion strategy. According to InvestingPro data, Apollo has demonstrated strong financial performance with a 10.93% return in the past week, suggesting market confidence in its strategic moves. Quentin Gillette, CEO of PGS, expressed enthusiasm about the partnership with Apollo, noting the alignment with PGS’s mission to provide reliable utility services while maintaining its core culture.

Craig Horton, Partner at Apollo, highlighted the investment’s alignment with Apollo’s focus on industries driving a Global Industrial Renaissance. He emphasized PGS’s role in meeting power demand and contributing to grid stability and infrastructure.

The Sterling Group, which has been instrumental in PGS’s growth since 2021, also voiced support for the company’s continued success post-transaction. The acquisition is subject to customary closing conditions, including regulatory approvals.

Financial advisory roles were filled by J.P. Morgan Securities LLC for Apollo and Lincoln International for PGS and its shareholders. Legal counsel was provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP and Kirkland & Ellis LLP, respectively.

Apollo, a global alternative asset manager with approximately $785 billion in assets under management as of March 31, 2025, is known for its diverse investment strategies and has maintained dividend payments for 15 consecutive years, currently yielding 1.42%. Trading at a P/E ratio of 24.92, Apollo appears slightly undervalued according to InvestingPro Fair Value analysis. For deeper insights into Apollo’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers. The Sterling Group, a private equity firm with a focus on manufacturing, distribution, and industrial services, manages $9.4 billion in assets.

This news is based on a press release statement.

In other recent news, Apollo Global Management reported its first-quarter 2025 earnings, revealing an adjusted net income of $1.1 billion or $1.82 per share, missing analysts’ expectations of $1.93 per share. Revenue also fell short of forecasts, coming in at $978 million compared to the expected $981.9 million. Despite the earnings miss, Apollo reported record fee-related earnings of $559 million, a 21% increase year-over-year, and assets under management surged to $785 billion, driven by substantial inflows of $43 billion during the first quarter. Meanwhile, New Home Co. announced its agreement to acquire Landsea Homes Corporation in an all-cash transaction valued at approximately $1.2 billion, with the acquisition expected to close in the third quarter of 2025. This strategic move aims to expand New Home’s footprint across 10 high-growth markets in the United States. In another development, Apollo-managed funds will acquire Hav Energy LNG Holding AS, a maritime liquefied natural gas infrastructure platform, though the transaction details remain undisclosed. Additionally, JPMorgan adjusted its price target for Apollo Global Management shares to $151 from $161, maintaining an Overweight rating despite the earnings miss.

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