PE-backed DHI buys Blazer Water Transfer

Dalbo Holdings Inc, which is backed by Lincolnshire portfolio, has acquired Blazer Water Transfer, a water transfer service provider in the Permian Basin.

Dalbo Holdings Inc, which is backed by Lincolnshire portfolio, has acquired Blazer Water Transfer, a water transfer service provider in the Permian Basin. No financial terms were disclosed.

PRESS RELEASE

MIDLAND, TX – January 2021 – Dalbo Holdings, Inc. (“DHI”) a Lincolnshire portfolio company, is pleased to announce that it has acquired Blazer Water Transfer (“Blazer” or the “Company”), a leading water transfer service provider in the Permian Basin. The Company provides E&P companies with custom designed water transfer solutions through a combination of high-volume pumps and lay flat hose (LFH). The Company solves a critical need for its blue-chip E&P customers by providing water to frac sites and then removing produced water after the well has been completed. The acquisition accelerates DHI’s growth strategy to expand its water management solutions offerings in the Permian Basin.

Water usage during the hydraulic fracturing process has dramatically increased over the past several years as E&P companies have shifted to drilling longer laterals and using more pressure and proppant in their fracs. A frac today can require as much as 650,000 barrels of water which needs to be sourced and transferred to the wellhead often from several miles away. A water transfer system provides an efficient and environmentally friendly solution to this problem. It is estimated that water delivery related costs can be reduced by up to 95% if the LFH and pumps system is properly used compared to using trucks to transfer the water. Furthermore, replacing trucks with LFH reduces carbon emissions, a major objective for the Company’s E&P customers.

Located in the Permian, Blazer is poised to capitalize on both the growth and resiliency of the most prolific shale plays in the US. Water Transfer is projected to be one of the fastest growing sub-segments of the larger US onshore oilfield service industry. As of 2019 it was estimated that Water Transfer is around a $25 billion market and, assuming a return to normalized fossil fuel prices in mid to late 2021, it could grow to over $40 billion by 2025.

Gary Coates, CEO of DHI said “We are thrilled to be partnering with an A class management team who share in our strategic vision and reflect our company values.”

TJ Maloney, CEO and Chairman of Lincolnshire said “Blazer is the perfect addition to the Dalbo platform and we are excited to help drive the future growth of the combined businesses.”

About Dalbo Holdings, Inc.
DHI provides a range of equipment solutions and environmental services focused on water management. With one of the largest frac tank fleets in the United States, DHI offers services in 12 states. DHI takes pride in putting its customers’ needs first and focusing on innovative engineered solutions that provide cost savings, safety enhancements, and operational efficiency with technology and know-how built on decades of experience. For more information: www.dalboholdings.com.

About Lincolnshire Management, Inc.
Lincolnshire Management Inc., founded in 1986, is a private equity firm focused on investing in and acquiring growing middle market companies across an array of industries. Headquartered in New York, Lincolnshire Management invests in acquisitions of private companies, recapitalizations, corporate divestitures, management buyouts and growth equity for public and private companies. Lincolnshire Management manages over $1.7 billion of private equity capital. For more information: www.lincolnshiremgmt.com.