Buyout shop Avista Capital Partners is buying Top-Co Inc., a designer and manufacturer of specialized casing cementing products used in the drilling and completion of oil, natural gas and geothermal wells. Terms of the deal were not released. The deal is expected to close during the second quarter. Top-Co is based in Edmonton, Alberta.
Avista Capital Partners (“Avista”), a leading private equity firm, announced that it has signed a definitive agreement to acquire Top-Co Inc. (“Top-Co” or “the Company”), a privately-held, leading designer and manufacturer of specialized casing cementing products used in the drilling and completion of oil, natural gas and geothermal wells. The Company serves a diverse global customer base comprised of E&P and national oil companies, multinational service companies and North American and international agents and distributors. Terms of the transaction, which is expected to close in the second quarter of 2012, were not disclosed.
Trevor Turbidy, an Energy Industry Advisor with Avista, commented, “We are delighted about our new partnership with Top-Co. With its highly experienced management team led by Gerald McLaughlan, the Company’s robust casing hardware product offering, technology-driven client focus and best-in-class testing facility, Top-Co is well positioned to continue to capitalize on several key oil and gas industry trends, including increased horizontal drilling, longer laterals, deeper wells and a greater number of frac stages per well, all of which will increase demand for the Company’s products. We look forward to supporting the Top-Co team as they deliver on their long-term strategic plan, capitalize on near-term growth opportunities and continue to capture additional global market share in the casing hardware market.”
Gerald McLaughlan, CEO of Top-Co, said, “Our company has systematically prepared for profitable growth in domestic and international markets, and the active participation of Avista Capital Partners will enhance our ability to execute key strategies and meet our goals. Avista’s support, international experience and energy sector expertise will be invaluable as we capitalize on attractive opportunities in our niche domestic and international markets, facilitated by the near-term commercialization of a state-of-the-art manufacturing facility in China.”
Allen Yurko, an Industrials Industry Advisor with Avista, commented, “Top-Co has a very strong reputation in Canada and has been successful in penetrating other markets, particularly the U.S. We look forward to working with the Company as it continues to build its global brand and expand internationally as well as establish incremental manufacturing operations in key foreign markets.”
CIBC World Markets Inc. served as financial advisor and Burnet, Duckworth & Palmer LLP served as legal advisor to Top-Co. Weil, Gotshal & Manges LLP and McCarthy Tetrault LLP both served as legal advisor to Avista.
About Top-Co Inc.
Founded in 1963 and headquartered in Edmonton, Alberta, Top-Co designs and manufactures float equipment and mechanical cementing products, including centralizers and casing accessories primarily for use in oil and natural gas wells. Top-Co currently operates two plants: a 132,000 sq. ft. facility in Edmonton and a 41,000 sq. ft. manufacturing platform in Weatherford, Texas. In addition, the Company has customer service and product support centers throughout the world, including Canada, the United States, the United Arab Emirates, Russia, the Netherlands, Australia, the United Kingdom, Colombia and Mexico. Top-Co’s global presence is augmented by a network of qualified agents and distributors providing regional customer service and product support. For more information, please visit: www.top-co.ca .
About Avista Capital Partners
Avista Capital Partners is a leading private equity firm with over $4 billion under management with offices in New York, Houston, and London. Founded in 2005, Avista’s strategy is to make controlling or influential minority investments in growth-oriented energy, healthcare, communications & media, industrial and consumer businesses. Through its team of seasoned investment professionals and industry experts, Avista seeks to partner with exceptional management teams to invest in and add value to well-positioned businesses.