Allied Services Group Acquires Substations Inc., Powering into Texas

BOSTON, MA – January 06, 2026 – Allied Services Group, a rapidly expanding electrical solutions provider, has announced its acquisition of Texas-based Substations, Inc. (SSI), a strategic move that plants its flag firmly in one of the nation's most dynamic and power-hungry markets. The deal, orchestrated by Allied's parent investment firm Bear Castle Capital, significantly enhances Allied's capabilities by integrating SSI's specialized expertise in high-voltage substation and switchyard services.

The acquisition marks a critical expansion for Allied, extending its operational footprint from five states in the Western and Southern U.S. into the booming South-Central region, with Texas as its epicenter. For a market grappling with unprecedented electricity demand, the arrival of a newly fortified major player signals a new phase in the race to build a more resilient and powerful energy grid.

A Strategic Play for a Surging Market

The timing of Allied's entry into Texas could not be more critical. The state's electrical grid, managed by the Electric Reliability Council of Texas (ERCOT), is under immense pressure. Projections show Texas's electricity demand could nearly double by 2030, a surge driven by a confluence of factors including rapid population growth, the proliferation of energy-intensive data centers and cryptocurrency mining operations, and the expansion of the oil and gas industry.

To meet this challenge, Texas is embarking on a massive infrastructure overhaul. ERCOT anticipates investing approximately $5 billion annually in transmission projects over the next six years. A cornerstone of this plan is the development of a new, higher-voltage 765-kilovolt (kV) network, highlighted by the recently approved $9.4 billion Eastern Backbone project. This initiative is designed specifically to handle the immense load growth and bolster grid reliability. Further fueling this build-out is the Texas Energy Fund, a state-backed incentive program poised to double to $10 billion to support new power plant construction and grid modernization.

This is the environment into which Allied Services Group now steps, armed with the precise expertise required. Substations, Inc., founded in 2013, has carved out a vital niche in the high-voltage sector, specializing in the installation, modification, and maintenance of substations and switchyards at voltages up to 500 kV. This capability directly aligns with the needs of large-scale transmission projects, making the company a valuable asset for connecting new power generation sources—from natural gas plants to wind and solar farms—to the grid.

Robert B. Lane, Founder & Chief Executive Officer of Allied, highlighted the strategic value of this expertise. “SSI has brought its outstanding workforce and leadership into our family of companies,” said Lane. “The Company has consistently demonstrated elite operational execution and has a remarkable reputation in one of the fastest growing markets in the nation. Our entire team at Allied is extremely proud that SSI has decided to partner with us in their journey to become one of the largest electrical service providers throughout the South-Central region.”

The Bear Castle Blueprint for Building an Industry Leader

Behind Allied's strategic expansion is the guiding hand of Bear Castle Capital, a private investment firm with a clear and ambitious vision. Founded in 2021 by industry veterans Robert B. Lane and Jennifer F. Fish, Bear Castle has focused its strategy exclusively on the building industry, which it views as "essential to progress." The firm invests across five key verticals: contractors and construction services, architecture and engineering, construction materials, building products, and construction software.

The acquisition of SSI is a textbook execution of Bear Castle's platform-building strategy. The firm established Allied Services Group as its dedicated electrical services platform, beginning with the acquisition of Colstrip Electrical, Inc. (CEI), a full-service provider with a diverse portfolio across industrial, data center, and aerospace sectors. The addition of SSI is not just a bolt-on acquisition; it is a transformative step that adds a crucial high-voltage specialty and a geographic anchor in a vital market.

This move mirrors Bear Castle's strategy in other sectors, such as its recent launch of Response Fire Protection, a new fire and life safety platform. The firm's methodology involves partnering with strong management teams, respecting the "field-first" culture of its acquired companies, and implementing broad-based equity programs to align employee interests with long-term growth.

Jennifer F. Fish, Co-Founder & Managing Partner at Bear Castle, underscored the long-term opportunity. “We are excited to announce the closing of the SSI acquisition, extending our family of companies and lines of business into the South-Central United States," she noted. "The electrical services industry provides many growth possibilities and SSI is well positioned to take advantage of the opportunities. We are confident that this will be a strong partnership.”

Integrating Niche Expertise for Broader Solutions

For customers of both Allied and the former SSI, the merger promises a significantly enhanced value proposition. Allied, already described as one of the largest privately held providers of specialty construction services in the U.S., now adds a critical, high-end capability to its service menu. While its foundation through CEI provided robust services in complex electrical systems for commercial and industrial clients, SSI’s expertise elevates the company into the realm of major power transmission infrastructure.

This synergy allows Allied to offer a more complete, end-to-end solution for a wider range of clients. An industrial client building a new manufacturing facility or a tech company constructing a data center in Texas will not only need internal electrical systems but also a high-voltage connection to the grid. With SSI's capabilities integrated, Allied can now serve both needs, simplifying the construction process for clients and capturing a larger share of the project value chain.

The integration appears focused on leveraging SSI’s established strengths. The retention of SSI’s "outstanding workforce and leadership," as mentioned by Lane, indicates a strategy of acquiring not just assets and contracts, but also invaluable human capital and operational know-how. By preserving the team that built SSI's "remarkable reputation," Allied aims to ensure a seamless transition for existing customers while scaling up its operations to meet the region's immense demand for reliable power infrastructure.