News

Intervale Harvey Update

09/06/2017

Dear Friends,

For those in the Houston area or who have family or friends impacted by Hurricane Harvey, our heartfelt thoughts are with you. We hope your family members and friends in the area are all safe.

Intervale Employees & the Houston Office:
We are grateful to report that Intervale professionals and their families are all safe. Intervale’s Houston headquarters did not encounter flooding or damage from the storm. While the Houston office was closed from noon on Friday, August 25th through end of the day on Thursday August 31st, all Intervale employees were able to work remotely and there was no disruption to email or network access. Our Houston office reopened on September 1st and is fully operational.

Portfolio Company Employees:
While we are grateful that all portfolio company employees are safe and sound, we are saddened to report that there are approximately 18 employees who either lost or encountered significant water damage to their homes. These employees have found temporary shelter through friends and family, but unfortunately it will be many months before they can move back home. We expect the number of impacted portfolio company employees to increase as the companies continue to collect information and support their employees.

Intervale Portfolio Companies:
Hurricane Harvey did not cause significant damage to our portfolio companies. Our platform companies in the region have either reopened for business or will be reopening the week of September 5th. Our manufacturing facilities, warehouses, and service centers across Houston, the Gulf Coast, South Texas, and East Texas were shut down in advance of the storm to ensure personnel safety. These facilities have encountered limited damage from the storm, and they have since reopened and are fully operational. Our management teams are in discussions with vendors to ensure adequate lead times for critical components and that supply chains are not disrupted. Activity across the oil patch has resumed and our portfolio companies remain focused on serving customers’ needs.

Path to Recovery:
For the approximately 18 families referenced above and thousands of families across Texas and Louisiana, the path to recovery will be a long one. The personal and economic toll has been and will continue to be significant:
• Estimates of Harvey's cost vary, with some predicting that the storm will be the most expensive in U.S. history at over $190 billion. (As a comparison, Katrina cost $160 billion in 2017 dollars.)
• Over 1 million cars have been destroyed
• Estimated 156,000 homes were damaged in Houston and Harris County alone (roughly 10% of homes in the county)
• More than 32,000 people are being housed in emergency shelters across the city

We are proud of how our team, portfolio company executives and employees, and thousands of volunteers have come to the aid of neighbors, friends and fellow Texans during the rescue and relief efforts. Rebuilding from Harvey will be a long-term project, and Intervale will be doing its part. We are focusing our efforts on those closest to Intervale, targeting our labor and financial resources to support portfolio company employees and their families dislocated by Hurricane Harvey. These initiatives have included financial contributions by Intervale and its employees, volunteering to remove sheetrock and carpeting from flooded homes, and working with our portfolio companies to provide additional financial assistance for critical needs such as housing, transportation and childcare.

We are touched by so many of you who have offered support and encouragement over the past week. Thank you for your continued thoughts for all who have been affected by this unprecedented storm. Like several of our portfolio companies, we have established a donation website:

https://www.gofundme.com/intervale-hurricane-relief-fund

All proceeds raised on the site will be directed to organizations and causes providing flood relief and other critical needs for families across our portfolio as well as our Houston neighbors affected by the storm.
Our industry, city and state are resilient and, together, we will overcome this latest challenge. If you have any concerns or questions, please feel free to reach out directly to any of the partners.

Sincerely,

Charles Cherington, Jason Turowsky, Patrick Connelly, and Tuan Tran