Cambridge, Mass.-based Intervale Capital has exited its investment in Casedhole Solutions Inc., selling the company to publicly traded C&J Energy Services. Terms were not released. Based in Houston, Casedhole Solutions is a provider of cased-hole wireline and other complementary services for energy producers. The Casedhole sale represents the first exit from Intervale’s Fund I, which closed on $280 million in 2008.
Intervale Capital, a private equity firm focused on the oilfield services industry, has sold Casedhole Solutions Inc. (“Casedhole”) to C&J Energy Services, Inc. CJES +6.15% . Headquartered in Houston, Texas, Casedhole Solutions is a leading multi-regional, independent provider of cased-hole wireline and other complementary services for energy producers. Casedhole is active in all of the leading oil and gas regions in the continental U.S., including the Eagle Ford Shale, Haynesville Shale, Granite Wash, Marcellus Shale, Permian Basin, Uinta Basin, Utica Shale and Williston Basin.
Intervale purchased Casedhole from its founders in June 2008. Over the course of its investment, Intervale recruited an experienced management team of wireline veterans, led by President & CEO Don Gawick. Since 2008, Casedhole’s management team grew its fleet from 14 wireline units in three districts to 58 wireline units in twelve locations across the US. Management also significantly expanded Casedhole’s service offering by introducing complementary pump-down and pressure testing services to its core wireline business. In the past five months, Casedhole integrated 11 pump-down units and eight wireline units into its fleet and has increased revenues by 119% versus the same period last year. The company grew at a 52% CAGR during Intervale’s ownership, from trailing twelve month revenue of $32.4 million in June of 2008 to $156.8 million for the twelve months ended March 31, 2012.
Erich Horsley, Partner at Intervale Capital, commented, “We are pleased to realize an attractive return for our investors and to turn Casedhole over to a well-regarded industry partner such as C&J. Intervale is particularly grateful to Don Gawick and the entire management team for the tremendous job building the company into a leading national player in cased-hole wireline. We are proud of our association with Casedhole Solutions and are confident that the company will continue to thrive as part of C&J.”
The Casedhole sale represents the first exit from Intervale’s Fund I, which closed on $280 million in 2008. Intervale is actively investing out of its second fund, through which it acquired oilfield cementing specialist Allied Oil and Gas Services in December of 2011.
Harris Williams & Co. acted as exclusive financial advisor to Casedhole Solutions and Fulbright & Jaworski L.L.P acted as legal advisor.
About Intervale Capital: Intervale Capital is an energy-focused private equity firm, with headquarters in Cambridge, Massachusetts, and an office in Houston, Texas, investing exclusively in middle-market oilfield services companies and related technologies.