Team, Inc. Announces Sale of Quest Integrity Business

Team, Inc. (NYSE: TISI) (“TEAM” or the “Company”), a global leading provider of integrated, digitally-enabled asset performance assurance and optimization solutions, today announced it has reached an agreement to sell its Quest Integrity business to Baker Hughes, an energy technology company that provides solutions to energy and industrial customers worldwide, for $280 million cash (before any customary post-closing adjustments). The divestiture is a key step in realizing the Company’s strategic initiative to refocus on its core businesses and improve profitability and cash flow.

In late 2021, TEAM announced a plan to review strategic options in order to maximize shareholder value. As a result of the Company’s ongoing portfolio review to streamline its operations and unlock value, the Company has agreed to sell its Quest Integrity business, which constitutes Team’s advanced inspection and engineering operations and reliability management business segment. The sale is expected to close in the fourth quarter of 2022, subject to customary closing conditions and regulatory approvals. This sale allows TEAM to make a substantial debt pay down, improves liquidity and importantly, allows the Company to focus on its core Inspection & Heat Treating and Mechanical Services businesses that represented over 87% of its consolidated revenues year to date through June 30, 2022.

“After a thorough assessment of the portfolio, our Board of Directors determined that selling Quest Integrity would be a key step in our plan to strengthen our balance sheet and is in the best interests of our shareholders.” said Keith Tucker, TEAM’s Interim Chief Executive Officer. “The Quest Integrity transition is expected to be seamless for our customers and employees while maintaining our commitment to meet our customers’ support needs with the high standards of safety and quality that both Team and Baker Hughes are known to deliver. This sale is an important step in our transformation plan and going forward, we are excited about the prospects for our business as we work to implement targeted growth and business improvements in order to drive improved profitability.”

Quest Integrity provides technology-enabled, advanced inspection and engineering assessment services and products that help organizations in the pipeline, refining, chemical and power industries improve operational planning, increase profitability, and reduce operational and safety risks. The Quest Integrity business generated over $80 million in revenues in 2021 and reported approximately $59 million in revenues through the six months ended June 30, 2022.

Robert W. Baird & Co served as the exclusive financial advisor to TEAM on the transaction. Kirkland & Ellis LLP served as TEAM’s legal counsel.

On-Demand Webinar