Sundt Construction’s recent acquisition of Industrial Power Solutions (IPS), a Phoenix-based industrial electrical contractor, expands the company’s electrical capabilities and provides better direct controls for clients. The move more than doubles Sundt’s skilled electrical workforce, strengthening its ability to deliver complex water and wastewater projects.

Water & Wastewater Group President Sam Reidy discusses what this partnership means for IPS and Sundt clients and how the acquisition aligns with Sundt’s strategic plan.

 

How did the IPS acquisition come about?

This has been in the works for a while. We were expanding our electrical self-perform capabilities for our Heavy Industrial & Mining Group, but for water and wastewater projects, electrical work is complex and specific to a treatment plant’s instrumentation and controls. On a typical water or wastewater project, electrical scope can represent more than 20% of the total contract value. The need for electricians experienced with treatment plants is definitely there.

IPS has a strong reputation in Phoenix, and they specialize in the water and wastewater market. They work with many of the same clients we do, and their company culture aligns with Sundt’s culture of safety, quality, and innovation.

 

What appealed to IPS about Sundt?

A lot of it was based on our reputation; Sundt being employee-owned was advantageous. And our company culture aligned well with the culture company founder Lucas Bruxvoort built at IPS. The two companies are forward-thinking and innovative. In addition, the acquisition allows IPS to work on larger, more long-term projects.

 

What unique capabilities does IPS bring to Sundt?

In addition to their experience in the water and wastewater market, IPS also has a manufacturing component to their business. They build control panels and provide instrumentation solutions.

That gives us more control over the supply chain and the schedule, which is incredibly important, yet has become more challenging in the past few years. When we self-perform or build key components ourselves, we can deliver better quality and more reliable outcomes.

 

How does this acquisition benefit clients?

Clients are facing a real challenge right now. There are fewer electrical contractors available in the water market, especially as many have shifted toward high-demand sectors like data centers.

That can mean limited competition and increased project risk. By bringing IPS into Sundt, we are giving clients a stronger, more reliable solution.

At the same time, IPS will continue to operate as its own independent subsidiary and compete for work. We’re committed to maintaining a level playing field and ensuring clients still benefit from competitive bidding.

 

So, IPS will continue to work with other general contractors?

They can and they do. They currently work with some of our largest peers, and we want that to continue. Maintaining that independence is important for the market and for IPS’s continued success. This acquisition is about expanding capability, not limiting choice.

 

IPS employees are now part of an employee-owned company. What does that mean for them?

More than 200 IPS employees are now part of Sundt’s employee stock ownership plan (ESOP). That’s a great benefit for them. Within Sundt, and within other employee-owned companies, individuals feel more empowered in their work and careers. Our employee-owners are invested in the success of their work, the projects and the company. Long-term, the ESOP helps employee-owners build financial stability for their future.

There is always some uncertainty during a transition like this, but we are seeing a lot of enthusiasm, especially around the opportunities ahead. IPS employees now have access to larger, longer-term projects and the chance to grow both geographically and professionally.

 

How does this acquisition align with Sundt’s long-term strategy?

It hits several key pillars of our 10-year strategic plan, including people, innovation and market focus. IPS’s manufacturing capabilities and forward-thinking approach strengthen how we deliver work. We have employee-owners who are committed to helping fulfill our mission to be the most skilled builder in America, and we’re supporting those individuals through excellent benefits and training opportunities. Finally, with IPS as a Sundt subsidiary, it expands our self-perform capabilities, which gives clients more assurance in quality, schedule and cost.

 

What excites you most about this partnership going forward?

We’re delivering more value to our clients and strengthening a critical part of our business. This positions Sundt and IPS well to respond to the national need for expanding and upgrading water and wastewater treatment infrastructure.

IPS has built a strong business over nearly two decades. Now, with Sundt’s resources and project pipeline, they have the chance to take that to the next level: larger and longer-duration projects, expanded geography, and continued business growth.

 

By bringing together IPS’s specialized electrical expertise, Sundt’s self-perform strength, demonstrated expertise and experience in the water and wastewater market, and our employee-owned culture, the acquisition creates a powerful combination designed to meet rising demand, reduce risk, and deliver smarter solutions for complex infrastructure.