Team, Inc. Announces Purchase Of Quest Integrity Group, LLC

ALVIN, Texas, Nov. 3, 2010 (GLOBE NEWSWIRE) -- Team, Inc. (Nasdaq:TISI) today reported that it purchased Quest Integrity Group, LLC ("Quest Integrity"), a privately held advanced inspection services and engineering assessment company. Team effectively purchased 95% of Quest Integrity for a total consideration of $42.6 million, consisting of a cash payment of $39.1 million and the issuance of $3.5 million in TISI restricted common stock (approximately 186 thousand shares). Team expects to purchase the remaining 5% in 2015 for a purchase consideration based upon the future performance of Quest Integrity. Future consideration would be for a value of no less than $2.4 million payable in Team common stock.

Headquartered near Seattle, Washington, Quest Integrity has leading technical capabilities related to the measurement and assessment of facility and pipeline mechanical integrity. It has developed several propriety tools for advanced tube and pipeline inspection and measurement. Supporting and augmenting these proprietary inspection tools, Quest Integrity has an advanced technical team that provides specialized engineering assessments of facility conditions and serviceability. The company maintains operations in Seattle, Boulder, and New Zealand, and has service locations in Houston, Calgary, Australia, The Netherlands, and the Middle East. 

"We are pleased that Quest Integrity Group has joined the Team family. In addition to its own exciting growth opportunities related to specialty inspection services, we are enthusiastic about the joint growth opportunities for Quest Integrity and Team's other service lines utilizing Quest Integrity's extensive engineering assessment capabilities and related analytical tools combined with Team's extensive market presence and large field service capability," said Phil Hawk, Team's Chairman and CEO.

Under Team's ownership, all of Quest Integrity's current management team will continue to lead the company which will operate as part of Team's TCM Division (inspection and field heat treating services). 

The purchase was financed through additional borrowings from Team's existing credit facility and the acquisition is expected to have a neutral impact on reported earnings during the first year as part of Team. For calendar year 2010, Quest Integrity Group revenues and EBITDA are estimated to be approximately $22 million and $5 million, respectively.