Lone Star Investment Advisors has sold Petroplex Acidizing to One Rock Capital Partners. Based in Midland, Texas, Petroplex is a provider of acidizing and chemical stimulation treatments for oil, gas and injection wells. The sale of the company resulted in a 50% IRR and 6.24x cash-on-cash return to Lone Star, the firm announced.
Lone Star Investment Advisors today announced the sale of Petroplex Acidizing, LP to One Rock Capital Partners, LLC. Aided by Lone Star, Petroplex expanded its major customer accounts, added product offering for key customers and more than doubled annual sales over five years, which represents a compound annual growth rate of 18 percent. The sale of the company resulted in a 50 percent IRR and 6.24x cash-on-cash return to Lone Star.
Founded in 1981 by Larry Foster and headquartered in Midland, Texas, Petroplex is the largest provider of acidizing and chemical stimulation treatments for oil, gas and injection wells located in the Permian Basin – the largest and most prolific onshore oilfield in the continental U.S. Lone Star acquired Petroplex in October 2007.
“Petroplex’s highly experienced management team has been with the company for more than two decades. Their extensive operating experience in the Permian Basin and commitment to their customers, innovation and growth is why Petroplex is the largest and longest standing acidizing provider in that region,” said Arthur Hollingsworth, managing director for Lone Star Investment Advisors. “We are proud to have partnered with Tony Cunningham, Petroplex CEO, and the rest of the management team.”
Lone Star was represented by Julie Silcock and Mark Johnson of Houlihan Lokey’s Dallas office. Bruce Hallett of Dallas-based Hallett & Perin was the seller’s counsel.
About Lone Star Investment Advisors
Lone Star Investment Advisors (“Lone Star” or “the Firm”) is a Dallas-based private equity firm that specializes in leveraged acquisitions and recapitalizations of strategically viable middle-market businesses with strong potential for growth. Lone Star invests in a wide variety of industry sectors including manufacturing / industrial, distribution, business services and energy. Lone Star specializes in investments that create employment opportunities in the communities in which they are located, and the Firm maintains a strong reputation for driving economic growth in low income areas. The Firm’s website address is www.lonestarinvestmentadvisors.com.
About Petroplex Acidizing, LP
Petroplex Acidizing, LP (“Petroplex”) provides acidizing and chemical stimulation treatments for oil wells located in the Permian Basin area of West Texas and Southeastern New Mexico. The Company is headquartered in Midland, Texas and operates equipment yards and product blending facilities in Midland and in Lovington, New Mexico. The Company’s website address is www.petroplex.com.
About One Rock Capital Partners
One Rock Capital Partners, LLC (“One Rock”) is a private investment company that provides equity capital for high-potential middle-market businesses. One Rock enhances the value of the companies in which it invests by bringing world-class operational, strategic, and financial resources to help company management achieve its goals.