Intervale Capital has acquired a majority stake in American Disposal Services, which provides services to dispose of injectable drilling and production waste in the Eagle Ford and Haynesville shale areas. Along with the deal, Gabriel Rio was appointed president and chief executive officer. Terms of the deal were not disclosed.
Intervale Capital (“Intervale”), an energy-focused private equity firm, announced today that it has acquired a majority stake in American Disposal Services (“ADS” or the “Company”). The Company was founded in 1993 by J.D. “Doug” Ivey, who was joined by his son Austin in 2009. ADS is a leading provider of disposal of injectable drilling and production waste in the Eagle Ford and Haynesville Shale plays, with operating facilities in Frio, Atascosa, Fayette and Newton Counties in Texas.
At closing, Doug Ivey was promoted to Senior Vice President of ADS, where he will oversee a dedicated team focused on designing and building additional facilities throughout the United States. Mr. Ivey commented, “I am excited to partner with Intervale to take our business to the next level. Intervale has a track record of driving industry-leading growth among its portfolio companies by recruiting top managers and investing rapidly in geographic and product line expansion.”
Concurrent with the transaction, Gabriel Rio, a seasoned oilfield waste executive, was appointed President and Chief Executive Officer. He is joined by Frank Schageman, a former CFO of multiple oilfield service businesses, who will serve as Chief Financial Officer. Mr. Rio commented, “We see a tremendous opportunity to rapidly grow ADS into a national, best-in-class oilfield waste management platform. We are committed to providing our customers with safe, reliable, cost-effective oilfield waste disposal solutions that enable domestic energy development while simultaneously protecting the environment.”
Tuan Tran, Principal at Intervale, added, “We are proud to partner with Gabriel, Doug and their excellent team. The Company benefits from several secular growth trends, including increasing reliance among operators on offsite disposal solutions and growing oilfield waste volumes associated with increased drilling efficiencies.”
Transaction terms were not disclosed. The Hancock Firm LLC acted as financial advisor and Winstead PC provided legal counsel to American Disposal Services. Wells Fargo’s Energy Group provided acquisition financing.
About Intervale Capital:
Intervale Capital is an energy-focused private equity firm with offices in Boston and Houston. Intervale invests exclusively in middle-market oilfield services and manufacturing companies and related technologies. The firm has raised $1.2 billion of committed capital since its inception in 2006 and is currently investing from its third fund. Intervale portfolio companies include Team Oil Tools (completions equipment and services), Aegis Chemical Solutions (production chemicals and water treatment), Allied Oil & Gas Services (cementing and acidizing services), Antelope Oil Tool (casing and cementing products), Certus Energy Solutions (diversified oilfield rental equipment), Energes Oilfield Solutions (well flow control, water transfer and safety services), Epic Lift Systems (artificial lift), Isolation Technologies (completion tools), Recapture Solutions (flare remediation, power generation and fueling solutions) and Tier 1 Energy Solutions (Canadian wireline and completions).