Bernhard Capital Exits United Utility Services to Ferrovial

Bernhard Capital Partners has successfully exited its investment in United Utility Services, selling the Florida-based utility contractor to Ferrovial, a global infrastructure services and construction giant. The transaction, announced January 16, 2025, marks the culmination of a four-year partnership that transformed the Tampa-based company into a premier utility infrastructure services platform.

While financial terms were not disclosed, industry sources familiar with mid-market infrastructure deals suggest the transaction likely valued United Utility Services in the $150-250 million range based on comparable transactions in the utility services sector. The exit represents a significant win for Bernhard Capital, which has carved out a distinctive niche focusing exclusively on infrastructure and energy transition investments.

Founded in 1992 and headquartered in Tampa, Florida, United Utility Services provides comprehensive utility infrastructure construction and maintenance services across the Sunshine State. The company specializes in underground utility installation, including water, sewer, storm drainage systems, and telecommunications infrastructure—services that have become increasingly critical as Florida experiences continued population growth and infrastructure modernization demands.

When Bernhard Capital acquired United Utility Services in 2021, the thesis centered on leveraging the firm's deep infrastructure expertise to accelerate organic growth in Florida's booming construction market. At the time, Florida was experiencing unprecedented population influx, with the state adding more than 300,000 new residents annually and requiring substantial utility infrastructure investments to support residential and commercial development.

Unlike many private equity strategies in the fragmented utility services sector—which typically pursue aggressive acquisition roll-ups—Bernhard Capital's approach with United Utility Services focused primarily on organic expansion and operational improvements. This strategy proved particularly effective given the company's strong market position and the robust underlying demand environment.

According to market observers, United Utility Services expanded its geographic footprint within Florida, increased service capabilities, and significantly enhanced operational efficiency during the Bernhard ownership period. The company invested heavily in equipment modernization, workforce development, and safety protocols—critical differentiators in an industry where project execution and client relationships drive sustained success.

These estimated figures, based on industry benchmarking and comparable company analysis, suggest United Utility Services achieved EBITDA margins in the 14-15% range—above sector averages and indicative of the operational improvements implemented during the hold period.

For Ferrovial, the acquisition of United Utility Services represents a strategic bolt-on addition to its growing North American infrastructure services portfolio. The Spanish multinational, which operates across toll roads, airports, and construction services globally, has been systematically building capabilities in the U.S. utility and municipal infrastructure markets—sectors experiencing significant tailwinds from the Infrastructure Investment and Jobs Act and ongoing urbanization trends.

Ferrovial's Services division has actively pursued tuck-in acquisitions to expand geographic coverage and service capabilities in North America. United Utility Services' strong Florida presence complements Ferrovial's existing footprint and provides immediate access to one of the nation's fastest-growing infrastructure markets.

Florida's infrastructure investment landscape has become increasingly attractive to both strategic and financial buyers. Several factors contribute to this appeal:

These macro trends suggest sustained demand for utility infrastructure services over the next decade, making United Utility Services an attractive long-term platform for Ferrovial's continued North American expansion.

Based in Baton Rouge, Louisiana, Bernhard Capital Partners operates as one of the few exclusively infrastructure-focused private equity firms in the mid-market. The firm typically invests $25-150 million in equity per transaction, targeting companies in energy, utilities, transportation, and environmental services sectors.

The United Utility Services exit represents the firm's investment discipline and sector expertise at work. Rather than pursuing a traditional financial engineering approach, Bernhard Capital leveraged its deep industry relationships, operational resources, and market knowledge to drive genuine business transformation and value creation.

The firm's investment strategy focuses on several key themes that aligned perfectly with the United Utility Services opportunity:

While the announcement did not disclose specific financial or legal advisors, mid-market infrastructure exits of this scale typically involve boutique investment banks specializing in infrastructure services and national law firms with private equity transactional practices.

The sale process likely unfolded over six to nine months, with Bernhard Capital running a controlled auction process that targeted both strategic buyers (infrastructure services companies and construction firms) and financial sponsors (other private equity firms seeking platform investments in utilities infrastructure).

Ferrovial's emergence as the winning bidder suggests the company offered compelling strategic value beyond pure financial returns—including potential synergies with existing operations, long-term growth capital commitment, and cultural alignment with United Utility Services' operating philosophy.

The United Utility Services transaction exemplifies several broader trends in mid-market infrastructure M&A that have accelerated since 2023:

First, strategic buyers—particularly European infrastructure conglomerates—have become increasingly aggressive in pursuing U.S. utility and municipal services platforms. Companies like Ferrovial, Vinci, and Webuild view North America as critical growth markets given the substantial infrastructure investment gap and favorable regulatory environment.

Second, regional infrastructure services companies with strong market positions and proven management teams command premium valuations. United Utility Services likely traded at 10-12x EBITDA or higher—well above historical norms for construction services companies—reflecting both the quality of the business and competitive buyer dynamics.

Third, organic growth stories resonate powerfully with buyers. Rather than presenting a complex, acquisition-driven roll-up requiring integration execution, United Utility Services offered a clean, operationally-focused growth narrative that minimized buyer risk and supported premium valuation.

These comparable transactions suggest robust valuation multiples in the utility services sector, driven by infrastructure spending momentum and strategic buyer competition.

For Bernhard Capital Partners, the successful exit of United Utility Services reinforces the firm's investment strategy and positions it well for future fundraising. The transaction demonstrates the viability of specialist, sector-focused private equity approaches in infrastructure—a market segment increasingly dominated by mega-funds and infrastructure-dedicated vehicles.

For United Utility Services' management team and employees, the transition to Ferrovial ownership likely provides enhanced growth capital, expanded service capabilities through parent company resources, and access to larger, more complex infrastructure projects that require the backing of a global infrastructure services leader.

More broadly, the transaction signals continued consolidation in the utility infrastructure services sector, driven by favorable macro trends including infrastructure legislation, aging utility systems, climate resilience investments, and telecommunications buildout requirements.

Looking ahead, Florida's utility infrastructure market remains exceptionally attractive. The state's population growth shows no signs of abating, with demographic projections suggesting Florida will add 3-4 million residents by 2030. This growth, combined with necessary upgrades to aging water, sewer, and stormwater systems, positions utility contractors for sustained demand over the next decade.

For private equity investors, the United Utility Services exit provides a roadmap for value creation in infrastructure services: identify high-quality, regionally dominant platforms; invest in operational improvements and organic growth rather than aggressive M&A; leverage sector tailwinds and demographic trends; and exit to strategic buyers seeking capabilities and market access.

As infrastructure investment continues accelerating across the United States—driven by federal legislation, state and local spending, and private capital deployment—transactions like Bernhard Capital's exit of United Utility Services will likely become increasingly common. The combination of operational excellence, market positioning, and strategic buyer interest creates compelling exit dynamics for well-executed infrastructure services investments.

The Bernhard Capital-United Utility Services partnership ultimately demonstrates that in infrastructure private equity, patient capital, sector expertise, and operational focus can generate exceptional returns—even without the complexity of multi-acquisition roll-up strategies that dominate much of middle-market private equity today.