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Thread: USIC Sold

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    Senior Member ProfessionalLocator's Avatar
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    Default USIC Sold


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    Senior Member Paint'n & Flag'n's Avatar
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    Default Re: USIC Sold

    Got this from a buddy of mine. An email from Mike...


    Dear USIC Colleagues,



    It’s with great pleasure that I send you the attached press release announcing a change in the ownership of USIC. This is a very positive change for our business and it allows USIC to remain the same company with no management changes, yet provides access to more capital to support our growth plans.

    While you may see this release via the media today, I wanted you to hear the facts directly from me. The bottom line is we are changing our private equity investors from Kohlberg & Company (and Asplundh as a minority shareholder) to a much larger private equity fund--the Ontario Municipal Employees Retirement System (OMERS) as USIC’s major shareholder. We are also creating a larger and more international banking group as partners, and both of these actions will expand our access to growth capital.

    This is great news for all USIC employees as it will allow us to grow our business faster than we have in the past two years, yet cause no organizational changes.

    Our new partners recognize our many opportunities for growth and they want to help us expand USIC by acquiring and integrating other locating companies and diversifying into similar businesses. We also need additional capital to move our Company from its analog base to a digital future and to continue to provide you with the tools necessary to further improve the quality and safety of our locating services for our customers.

    You should be proud that, together, we have spent the past 2 years building the biggest and best locating firm in the U.S. that created a financially successful organization that became a desirable investment for other private equity funds.

    Now, with a broader financial foundation also in place, I look forward to continue working with you to take USIC to the next level of success—a level that I hope will provide the best locating service to our customers, which in turn will provide to you the career opportunities that you want for yourselves, and the job security that you’d like for your families.


    I high lighted a key statement in that letter. Acquired other locating companies!!!!!

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    Default Re: USIC Sold

    Soooo where do you think this leaves the cus/usic rumor. Are they still circling the wagons?

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    Default Re: USIC Sold

    Quote Originally Posted by orangeboots View Post
    Soooo where do you think this leaves the cus/usic rumor. Are they still circling the wagons?
    The most likely thing is the new owners will set back and read the real books to see how the firm is really doing. Anything can happen but first thing is nothing. If they follow suit of many firms that have been recently purchased the new owners will tell management what rate of return they will get on their money regardless of what the firm is capable of doing. Pay and benefits cuts are not required but are common at this time.

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    Senior Member Wingfoot's Avatar
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    Default Re: USIC Sold

    Quote Originally Posted by ProfessionalLocator View Post
    Quote Originally Posted by orangeboots View Post
    Soooo where do you think this leaves the cus/usic rumor. Are they still circling the wagons?
    The most likely thing is the new owners will set back and read the real books to see how the firm is really doing. Anything can happen but first thing is nothing. If they follow suit of many firms that have been recently purchased the new owners will tell management what rate of return they will get on their money regardless of what the firm is capable of doing. Pay and benefits cuts are not required but are common at this time.
    A pessimist sees only the dark side of the clouds, and mopes; a philosopher sees both sides, and shrugs; an optimist doesn't see the clouds at all - he's walking on them.
    Leonard Louis Levinson

    Soooo ProLoc - In regards to the addition of the new major shareholder/investor in USIC, which one of these Levinson three are you predicting the future of USIC?

    ------------------------------------------------------------------------------

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    Default Re: USIC Sold

    Quote Originally Posted by Wingfoot View Post
    A pessimist sees only the dark side of the clouds, and mopes; a philosopher sees both sides, and shrugs; an optimist doesn't see the clouds at all - he's walking on them.
    Leonard Louis Levinson

    Soooo ProLoc - In regards to the addition of the new major shareholder/investor in USIC, which one of these Levinson three are you predicting the future of USIC?

    ------------------------------------------------------------------------------
    Not knowing enough about the firm that purchased USIC I cannot predict.

    Maybe I'll research it while I sit here waiting for the rain to stop.

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    Premium Conservative OVUS1's Avatar
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    Default Re: USIC Sold

    Generally speaking investment groups are simply that - they invest with a certain expectation of a return. Strangely enough I tend to somewhat agree/disagree with ProLoc on this one. The new "banker" will have negotiated a certain return and could care less if the company can hit that number. That return will be required no matter what circumstances come about (economy tanks again, fuel goes through the roof, contracts are lost, health care goes sky high). It will be up to the company to do what is necessary to stay within and abide by the terms of the agreement. The company can add new business, create efficiencies in current contracts, streamline management, and reduce costs. Sometimes you can let an underperforming contract go to improve your bottom line (one step back, two steps forward). Most investment groups structure a deal where the first year or so the company might only have to pay the interest on the debt. It makes it easier for the company to make the changes necessary and build up a cash surplus before the big note (including principal) comes rolling in. This new investment group might be able to give USIC more buying power for better deals on vehicles and equipment by providing the cash without USIC having to seek it through traditional ways at high interest rates. The new owners will most definitely have positions on the Board of Directors and can effect changes if required. In the current economy, and seeing how our government has lost its' collective minds, this could be a really good move for USIC and for its' employees and customers. It all comes down to the deal and the relationship between OMERS and USIC.

    I chose option 3 Wing.......
    Job Applicant: What does this job pay?
    Employer: I'm going to pay you just what you are worth!
    Job Applicant: I don't think I can work for that......

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    Default Re: USIC Sold

    Quote Originally Posted by OVUS1 View Post
    Generally speaking investment groups are simply that - they invest with a certain expectation of a return. Strangely enough I tend to somewhat agree/disagree with ProLoc on this one. The new "banker" will have negotiated a certain return and could care less if the company can hit that number. That return will be required no matter what circumstances come about (economy tanks again, fuel goes through the roof, contracts are lost, health care goes sky high). It will be up to the company to do what is necessary to stay within and abide by the terms of the agreement. The company can add new business, create efficiencies in current contracts, streamline management, and reduce costs. Sometimes you can let an underperforming contract go to improve your bottom line (one step back, two steps forward). Most investment groups structure a deal where the first year or so the company might only have to pay the interest on the debt. It makes it easier for the company to make the changes necessary and build up a cash surplus before the big note (including principal) comes rolling in. This new investment group might be able to give USIC more buying power for better deals on vehicles and equipment by providing the cash without USIC having to seek it through traditional ways at high interest rates. The new owners will most definitely have positions on the Board of Directors and can effect changes if required. In the current economy, and seeing how our government has lost its' collective minds, this could be a really good move for USIC and for its' employees and customers. It all comes down to the deal and the relationship between OMERS and USIC.

    I chose option 3 Wing.......
    I see one fault here, they purchased controlling interest stock not from USIC but from the third party investment company that owned that stock. It was just a stock purchase so there was no negotiation with USIC s to what will happen the 1st year or any other time. The people at USIC will be told what to do with no negotiating.

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    Default Re: USIC Sold

    Quote Originally Posted by orangeboots View Post
    Soooo where do you think this leaves the cus/usic rumor. Are they still circling the wagons?
    Seeing that OMERS has a very large interest in Tricor Pacific and Tricor Pacific owns CUS I'd say the rumors will continue to fly.

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    Default Re: USIC Sold

    I thought cus was a private company owned by 2 guys that used to manage other locate companies?

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    Default Re: USIC Sold

    Quote Originally Posted by orangeboots View Post
    I thought cus was a private company owned by 2 guys that used to manage other locate companies?
    I do not know that but you have to understand that "private companies" today are rarely proprietorship. They are almost always incorporated and that means the holders of the stock can sell it.

    Some firms like Dycom are openly traded on the stock exchange but in these small firms the stock is sold in one on one deals.

    Firms are incorporated to free the owners of liability. This makes them only stockholders and as such not liable for the actions or debts of their firms. So if you and a buddy open a business together your buddy can sell their stock to anyone at anytime. Many times people put a buyout agreement into place but even then they have to be able to match or beat the price someone else is willing to pay.
    Last edited by ProfessionalLocator; April 22nd, 2010 at 09:11 PM. Reason: spelling

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    Default Re: USIC Sold

    ... as the world turns ...
    "Aye, verily hath I spoken." - Thor, god of thunder

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    Senior Member 6feetunder's Avatar
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    Default Re: USIC Sold

    Yup, makes sense why they cut staff, cut bonuses , froze wages and didn't buy squat for over a year. All so they could make it look more profitable and tasty to a new investor with deeper pockets. Problem is they will have to do even worse this year to make sure that investor gets the return they were undoubtedly promised. Buckle in guys, this year will be harder yet for the USIC folks.
    Life's a garden, dig it! - Joe Dirt

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    Default Re: USIC Sold

    i would like to know what happen with the employees stock in the company. thought they said in a couple of years the employes could by stock in the complany and all that, look like that will never happen. just be the same old same old more work less pay

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    Default Re: USIC Sold

    who bought us? an investment group? why would anyone want to do that with all the bs usic is putting us through with the gps and idle time stuff. we have lost contracts too! i think here in il we are about to loose the charter cable contract. is being taken back inhouse or is there a new locating company in town? anybody know whats up with this?

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