Riverstone Holdings is to acquire Utex from investment funds affiliated with Rhône Capital. Financial terms of the transaction were not disclosed.
Riverstone Holdings LLC (“Riverstone”), a leading energy and power-focused private equity firm, and Utex Industries, Inc (“Utex”), based in Houston, Texas, announced today the signing of a definitive agreement pursuant to which Riverstone Global Energy and Power Fund V, L.P., in partnership with Utex management, have agreed to acquire Utex from investment funds affiliated with Rhône Capital L.L.C. (“Rhône”). Financial terms of the transaction were not disclosed. The transaction is subject to certain regulatory approvals and is expected to close in April.
Founded in 1940, Utex is a leading manufacturer of engineered sealing and other specialty products used in a variety of applications and equipment related to onshore and offshore oil and gas drilling and production, power, mining, water treatment, and other industrial sectors. Many of the company’s products are used in severe operating environments, where high pressures and temperatures present particular challenges that require unique and customized solutions. A majority of the company’s products are “consumables” with short life-cycles requiring replacement at regular intervals to avoid failure in critical, capital-intensive applications. For more information, please visit www.utexind.com.
Mike Balas, CEO of Utex commented, “The management team at Utex is excited to establish this new partnership with Riverstone. We have great respect for the management team of Riverstone who clearly understands Utex’ end markets and long history of providing quality sealing and other engineered products for its customers’ most critical applications. I’d also like to thank the Rhône team for being great partners to Utex over the past few years, fully supporting our business plan and helping us select the perfect partner for the next phase of our growth and development as a company. We look forward to the next phase of Utex’s development with Riverstone as our partner.” Mr. Balas will continue as CEO of Utex following the closing of the transaction.
John Lancaster, a Partner at Riverstone added, “This investment is consistent with Riverstone’s prior investments in niche manufacturing companies that provide engineered consumable products for which demand is driven by the increasing challenges of deeper, higher-pressure, and more service-intensive oil and gas drilling and production operations. Mike and his talented team have amassed an impressive track record of success and we look forward to partnering with him and the company to build on that record.”
About Riverstone Holdings LLC
Riverstone is an energy and power-focused private equity firm founded in 2000 with approximately $24 billion of equity capital raised across seven investment funds, including the world’s largest renewable energy fund. Riverstone conducts buyout and growth capital investments in the midstream, exploration & production, oilfield services, power and renewable sectors of the energy industry. With offices in New York, London and Houston, the firm has committed approximately $21.3 billion to 96 investments in North America, Latin America, Europe, Africa and Asia.
Rhône, established in 1996, is a global private equity firm with more than €3 billion under management and a focus on private equity investments in market leading businesses with a pan-European or transatlantic presence and expansion prospects. Rhône’s investment philosophy includes the development of strong, strategic partnerships with the companies in which it invests. Rhône has offices in London and New York and currently holds investments in a diversified portfolio of companies including investments in the consumer, chemical & material, energy, industrial, and shipping industries.
For Riverstone Holdings LLC:
Jeffrey Taufield – Kekst and Company
For Utex Industries, Inc.:
Chief Executive Officer