LineStar Acquires Remote Operations Center and The Compliance Group

7/22/19

LineStar Integrity Services LLC, a leading provider of pipeline integrity, maintenance and repair services, today announced that it has completed the acquisition of Remote Operations Center, LLC and The Compliance Group, Inc. LineStar is a portfolio company of First Reserve, a leading global private equity investment firm exclusively focused on energy.

The acquisitions of ROC and CGI fit well within LineStar’s strategy of broadening its compliance and technical services offering to create what LineStar believes is a differentiated value proposition for its customers. ROC bolsters LineStar’s NuGen Automation subsidiary, which focuses on outsourced control room, GIS, SCADA, IT and other technical operations. The combination of ROC and NuGen creates one of the largest third-party control room operations in the industry and the only control room with a 24/7 on-site SCADA and IT support and development team. The Compliance Group greatly enhances LineStar’s documentation, audit support, and integrity management capabilities, leveraging LineStar’s existing geographical presence and field execution capabilities.

Paul Neundorfer, CEO of LineStar, stated, “We are excited to work with the ROC and CGI teams to deliver a level of expertise and breadth of service to our combined customer base that does not currently exist in our market. These transactions align well with our strategy of adding talented, proven operators to our organization and being responsive to industry demands, particularly those associated with regulatory compliance.”

Louis Krannich, CEO of ROC, added, “Joining LineStar simultaneously with CGI creates a unique combination of compliance, operations and technical expertise. This combined team can change the game for pipeline owners by creating true fit-for-purpose operations, optimized for safety and compliance. I am proud of our ROC team, thankful for our sponsors, appreciative of our customers and very excited about our future with LineStar.”

K.W. Pritchett, President of CGI, added, “The success of The Compliance Group over the past 17 years is directly attributable to the loyalty of our team and the sense of urgency to our customers. We are looking forward to taking the next step in conjunction with LineStar and ROC to build the premier compliance services organization in the industry.”

Financial details of the transactions were not disclosed.

About LineStar

LineStar Integrity Services provides a comprehensive suite of solutions which includes integrity maintenance, corrosion and cathodic protection, coatings, GIS, control room operations, measurement and automation, and O&M compliance throughout the midstream value chain. With over 750 employees and a strategic footprint in areas of concentrated pipeline infrastructure such as the Gulf Coast industrial corridor, the Mid-continent as well as the Eagle Ford, Permian and Appalachia basins, LineStar has an existing customer base of over 85 clients, including long-standing relationships with multiple blue-chip energy companies. These customers rely on LineStar for complete services and solutions that help manage risk, enhance safety and environmental best practices and compliance, and properly maintain the integrity of pipeline and midstream facility assets throughout their life cycles. For more information about LineStar, please visit www.linestar.com.

About ROC

ROC connects you with the data and workforce you need to drive efficiency and reduce risk via a fully integrated network of operational data, devices and qualified personnel. All data is aggregated in ROC’s 24/7 manned control room and secured data center, where ROC can centrally monitor facilities, control field devices, dispatch personnel, analyze risk and optimize asset performance. Our integrated service provides reliable data, streamlined for decision making, at a fraction of the cost of obtaining, analyzing and assimilating the same information from disparate sources. For more information about ROC, please visit www.pipelineroc.com.

About CGI

The Compliance Group, Inc. is a full-service oil and gas regulatory and environmental compliance consulting company based in the Houston, Texas area. The Compliance Group, Inc. specializes in oil and gas permitting, DOT Pipeline Compliance, Pipeline Inspections, Bulk Storage Facility Oil Spill Response Planning and Safety. For more information about CGI, please visit www.thecompliancegroup.com.

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