<PAGE> 1
EXHIBIT 99.1
MPW, BAIRD CAPITAL PARTNERS COMPLETE EQUITY INVESTMENT IN PENTAGON
SUBSIDIARY
HEBRON, Ohio, July 19 /PRNewswire/ -- MPW Industrial Services Group,
Inc. (Nasdaq: MPWG) today reported that it has completed a previously-announced
transaction with Baird Capital Partners (BCP), an investment partnership,
providing for the partnership and certain of its limited partners to invest in
MPW's subsidiary, Pentagon Technologies Group, Inc. (Pentagon). Co-investing
with BCP is PPM America Capital Partners, a Chicago-based private equity
investment firm, and Antares Capital Corporation, a Chicago-based leveraged
capital provider. BCP is an affiliate of Robert W. Baird & Co. Incorporated, one
of the nation's largest investment banking firms headquartered outside of New
York. BCP and affiliates are now the majority owners of Pentagon's capital stock
and MPW and Pentagon's management have each retained a minority interest.
"When we formed the Pentagon subsidiary more than a year ago, we were
excited to be creating the only truly national player in the contamination
control services industry," said Monte R. Black, Chairman and Chief Executive
Officer of MPW. "As a continuing stakeholder of Pentagon, I am even more excited
by their prospects to achieve greater scale and continued success in the capable
hands of BCP."
MPW received payments totaling approximately $22 million, which will be
used to repay debt. Under the aegis of BCP, Pentagon is now well capitalized and
has completed a new $30 million credit facility to support its acquisition and
growth objectives. Pentagon will continue to be headquartered in the Silicon
Valley.
Commenting on the transaction, Pentagon Chief Executive Officer Frank
A. McBride added, "We are grateful to Monte and the rest of MPW management for
creating and nurturing Pentagon through its first phase of development. With the
recent upsurge in the semiconductor industry, we look forward to working with
BCP to aggressively pursue this growing opportunity and take Pentagon to the
next level."
MPW Industrial Services Group, Inc. is a leading provider of
integrated, technically-based industrial cleaning and related facilities support
services in North America. MPW offers five principal service lines that are
integral to a wide variety of manufacturing processes. These five service lines
are industrial cleaning and facility maintenance, industrial filtration
management, contamination control for cleanroom environments and related
services (through Pentagon), industrial container cleaning and industrial
process water purification. MPW provides these services to more than 1,200
customers in diverse industries. With headquarters in Hebron, Ohio, MPW has over
27 years of experience and currently has more than 2,200 employees in a network
of over 50 offices.
Pentagon, based in Fremont, California, is the leading company
providing contamination control solutions primarily to the semiconductor
industry and companies with critically clean manufacturing environments. With
offices in 10 U.S. locations, Pentagon provides technical services, parts
cleaning and coating management, facility cleaning and unique specialized
products to help its customers improve both production and yield in the
manufacture of products. Pentagon was formed in early 1999 through the
acquisition of seven leading companies in their respective fields. Further
information may also be obtained at the Company's Internet site:
http://www.pen-tec.com.
Baird Capital Partners focuses primarily on private equity investments
in attractive U.S.-based middle-market companies. In February 2000, BCP closed
its third private equity
<PAGE> 2
limited partnership raising a total of approximately $175 million. Collectively,
BCP and its European affiliate, Granville Baird Capital Partners, have more than
$500 million in committed capital. BCP partners with highly motivated,
entrepreneurial management teams where its expertise, capital and strong network
of resources will complement management's business objectives. The Company is
represented on-line through Robert W. Baird's Web site under the address
http://www.rwbaird.com.
PPM America Capital Partners is a Chicago-based private equity
investment firm, focusing on growth acquisitions, management buyouts and
recapitalizations of middle-market companies.
The statements contained in this news release that are forward looking
are based on current expectations that are subject to a number of uncertainties
and risks, and actual results may differ materially. The uncertainties and risks
include, but are not limited to competitive and other market factors, customer
purchasing behavior, general economic conditions and other facets of the
Company's business operations. Also, the Company's quarterly results of
operations may fluctuate as a result of a number of factors including but not
limited to the timing of customer activity and weather conditions. Additional
information about these and other risks and uncertainties can be found in
"Investment Considerations" in the Company's Annual Report on Form 10-K for the
fiscal year ended June 30, 1999; and in other documents the Company files or has
filed with the Securities and Exchange Commission. Further information may also
be obtained at the Company's Internet site: http://www.mpwservices.com.
