Delta Rigging Buys Morgan City Rentals

Delta Rigging & Tools, which is backed by Austin Ventures, has acquired Morgan City Rentals. Financial terms were not announced. Morgan City provides offshore equipment services to the energy end-market primarily in the Gulf of Mexico. Southwest Securities provided financial advice to Morgan City.

PRESS RELEASE

Southwest Securities, Inc. (“SWS”) a leading middle market investment banking group headquartered in Dallas, announces the sale of Morgan City Rentals (“MCR” or the “Company”), a best-in-class provider of offshore equipment services to the energy end-market primarily in the Gulf of Mexico, to Delta Rigging & Tools, Inc. (“DR&T”), a portfolio company of Austin Ventures (“AV”). SWS acted as the exclusive advisor to MCR. The transaction closed on June 7, 2013, and was led by Stuart Brown and Richard Davis of SWS.
Established in 1970, MCR’s services include offshore equipment rental, wire rope and rigging supply sales and rentals, synthetic web sling manufacturing and sales and compliance and testing services. Over the course of the Company’s 43 year history, MCR has developed a reputation as a one-stop-shop, turnkey offshore equipment solutions provider with a reputation for best-in-class service. The Company is recognized for its diverse service offerings and equipment fleet, as well
as a commitment to equipment quality, availability, reliability and safety. MCR serves a blue-chip customer base in the offshore market as a go-to provider in the Gulf of Mexico. The acquisition of MCR by DR&T establishes the combined company as the leading offshore rental and rigging provider in the Louisiana gulf coast market offering significantly expanded rental and rigging capabilities and possessing the nation’s most extensive fleet of pipe slings, hoists, winches, compressors, pumps and related rigging equipment. The entire senior management team will remain with MCR and is committed to continuing to provide exceptional service to their customers.
Founded in December, 2004, DR&T is one of the largest U.S. providers for both sales and rental of rigging and lifting products, tools, and services. DR&T offers a complete portfolio of lifting solutions, including hoists, winches, wire rope, wire and synthetic slings, accessory parts, and hardware, as well as testing, inspection, and field service, and rental of lifting equipment and tools. DR&T services a diverse range of end-markets including Oil & Gas Production and Distribution, Energy & Power Generation, Transportation & Heavy Manufacturing & Construction. DR&T is headquartered in Pearland, Texas and conducts business in all 50 states and Puerto Rico.
AV has worked with talented entrepreneurs to build valuable companies for over 30 years. With $3.9 billion of capital raised, AV is the most active venture capital firm in Texas and one of the most established in the nation. AV invests in early stage and middle market companies, and its strategy is to partner with talented executives and entrepreneurs to build industry-leading companies predominantly in Texas.
Southwest Securities, Inc., a member of NYSE, FINRA and SIPC, provides securities brokerage, investment banking and securities clearing services to a broad range of individual, corporate, public and industry clients. The firm is a wholly owned subsidiary of SWS Group, Inc. (NYSE: SWS), a financial services holding company whose stock is listed and traded on the New York Stock Exchange under the symbol, SWS.