Aquilex Holdings said Friday that it has financially restructured its debt and is now majority owned by Centerbridge Partners. Also, Aquilex CEO and President Bill Varner is retiring while Donovan Boyd was named chairman of the board. Rothschild provided financial advice to Aquilex, while Alvarez & Marsal was restructuring advisor. Aquilex provides maintenance, repair and industrial cleaning solutions to the energy industry.
Aquilex Holdings LLC (“Aquilex” or the “Company”) today announced that it has successfully completed a consensual financial restructuring with holders of its first-lien debt, second-lien debt and 11⅛% senior notes due 2016. As a result of a debt-for-equity exchange and an $80 million equity investment, Aquilex has reduced its debt by over $300 million. The Company is now majority owned by affiliates of Centerbridge Partners, L.P. (“Centerbridge”).
Concurrently with the completion of the financial restructuring, Bill Varner has announced his retirement as the Company’s President and Chief Executive Officer. “I am proud to have been part of Aquilex’s growth and evolution into an industry leader,” said Mr. Varner. “The substantial investment by our new shareholders demonstrates their confidence in the Company’s management team, business plan, and growth opportunities ahead.”
In connection with the restructuring, Aquilex has announced the appointment of Donovan Boyd as Chairman of the Board of Directors of the Company. Mr. Boyd previously served as the Chairman and Chief Executive Officer of HydroChem Industrial Services, Inc., which was acquired by Aquilex in 2007 and currently constitutes the Company’s Industrial Cleaning Division. Mr. Boyd currently serves on the Boards of Directors of Brand Energy and Infrastructure and B&G Crane Service, LLC.
“I am very pleased to lead and support Aquilex as we continue to deliver innovative and high-quality integrated solutions to our customers and exceptional safety processes for our employees and customers,” stated Mr. Boyd. “I am confident that with our strong balance sheet and new equity partners, Aquilex is well positioned for long-term growth.”
Kyle N. Cruz, a Managing Director at Centerbridge, said: “We thank Bill for his leadership and commitment to the business throughout the restructuring process. Going forward, we are eager to work with Donovan and the Aquilex management team to start a new chapter for the Company. Our plan calls for a substantial investment in the business, which we expect will generate meaningful value and growth for Aquilex’s customers, employees and other stakeholders.”
Rothschild, Inc. is acting as financial advisor and investment banker and Richards, Layton & Finger is acting as legal advisor to Aquilex in connection with the restructuring. Alvarez & Marsal is acting as restructuring advisor to the Company. Kirkland & Ellis LLP is acting as legal advisor to Centerbridge in connection with the restructuring.
Aquilex Holdings LLC is the parent of Aquilex LLC, a leading provider of critical maintenance, repair and industrial cleaning solutions to the energy industry. Through our divisional and branch offices in the United States, Europe and the Middle East, we provide our services to a diverse global base of over 600 customers, primarily in the oil and gas refining, chemical and petrochemical production, fossil and nuclear power generation and waste-to-energy industries.
Centerbridge Partners, L.P. is a private investment firm based in New York City and currently has approximately $17 billion in capital under management. The firm focuses on private equity and credit investments. The firm is dedicated to partnering with world-class management teams across targeted industry sectors to help companies achieve their operating and financial objectives.