American Industrial Partners has acquired SG Holdings I from Wexford Capital. Founded in 1991, SERVA is a designer and manufacturer of fracking equipment, coiled tubing equipment, and well intervention and workover equipment.
American Industrial Partners (“AIP”), a middle-market private equity firm focused on acquiring and improving North American-headquartered industrial businesses, completed the acquisition of SG Holdings I, LLC (“SERVA” or the “Company”) from Wexford Capital, LP (“Wexford”), an SEC registered investment advisor with over $4 billion of assets under management headquartered in Greenwich, CT.
Founded in 1991, SERVA is a leading designer and manufacturer of fracking equipment, coiled tubing equipment, and well intervention and workover equipment, all of which are integral to the development of high-growth unconventional crude oil and natural gas resources in North America and increasingly in China. Within several of these product lines, and particularly in coiled tubing, SERVA has been successful in advancing the current technological frontier. The Company’s products are sold primarily in the United States and to an increasing degree in Asia. SERVA manufactures and distributes coiled tubing, cementer, blender, frac and hydration units at its three manufacturing facilities in Tulsa (OK), Duncan (OK) and Calgary (Canada), and its distribution facility located in Wichita Falls (TX). The Company currently employs approximately 282 full-time associates in North America. In addition to its North American operations, SERVA has established joint ventures in two Chinese businesses: SJS which produces pumps for fracking related equipment, associated fluid end replacement parts, cementing units, data vans, and downhole tools, and SDS which produces downhole cementing tools.
AIP has a long history of successfully buying industrial businesses, such as SERVA, and partnering with management to drive growth. “We believe SERVA is currently well positioned to participate in a recovery from what has been a cyclical low point of frack equipment capital spending,” said Constantinos Coutifaris of AIP. “The Company’s leading edge line of products allows SERVA to compete with differentiated offerings in many important end markets.”
“We believe that AIP will be a value-added partner for the Company going forward,” said Jorge Amador of AIP. “In collaboration with management, we have developed a compelling operating agenda that will allow SERVA to continue to successfully meet oil and gas customer needs through engineering excellence and new product development.”
About American Industrial Partners
American Industrial Partners (“AIP”) is an operationally oriented middle-market private equity firm that makes control investments in North American-based industrial businesses serving domestic and global markets. The Firm has deep roots in the industrial economy and has been active in private equity investing since 1989. To date, AIP has completed over 40 transactions and is currently managing more than $1.1 billion in equity capital. AIP invests in all forms of corporate divestitures, management buyouts, recapitalizations, and going-private transactions of established businesses with revenues of $100 million to $750 million. For more information about American Industrial Partners, contact Ben DeRosa, Partner at 212-627-2360, extension 200.
SOURCE American Industrial Partners