PE Firms Buy Environmental Drilling Solutions

Element Partners, CSL Capital Management and North Sky Capital have acquired Environmental Drilling Solutions. Formed in 2009, the company is a provider of closed-loop drilling solids control services to the North American oil and gas industry. Terms of the deal were not released. EDS is based in Lafayette, Louisiana.


Element Partners, an energy and industrial technology-focused private equity fund, and CSL Capital Management, an energy-services private equity firm, announced today that, along with North Sky Capital and key members of management, they have acquired Environmental Drilling Solutions (“EDS” or the “Company”).


EDS is a leading provider of closed-loop drilling solids control services to the North American oil and gas industry. EDS’ management team will continue to run the business, and current investor NGP Energy Technology Partners will retain an interest in the Company. PNC Bank arranged a syndicated credit facility to support the transaction and additional proceeds from the investment will be used to expand operations both onshore and offshore.


EDS, based in Lafayette, Louisiana, was formed in 2009 and has grown to become one of the leading solids control companies in North America. EDS serves top-tier oil and gas operators in Louisiana, Texas, Oklahoma, Wyoming, Pennsylvania, Ohio, West Virginia, and the Gulf of Mexico. The Company’s solutions enable operators to dramatically decrease their solids disposal expenses, recycle more drilling fluid, simplify and streamline drilling activity, and reduce their environmental footprint. The Company uses proprietary mobile and skid-mounted systems, paired with a commitment to customer service and rig safety – an approach honed by the team in their long tenure in the solids control and oilfield services industry.


According to Kirby Arceneaux, CEO of EDS, “We have experienced tremendous growth over the past two years, and are committed to building a world-class company. Element and CSL bring us the experience and resources that will help take EDS to the next level.”


“Solids control has been a focus in the offshore markets for decades but the explosive growth of the U.S. shale plays has brought it quickly to the forefront for ‘best-practices’ in onshore drilling. We look forward to working with CSL and Element to capture this huge opportunity for our business,” said Chad Hollier, founder and President of EDS.


“EDS’ innovations in closed-loop solids control solutions provide extraordinary economic and environmental value for the oil & gas industry,” said David Lincoln, Managing Director at Element Partners. “We are truly excited to partner with EDS’ management team to continue their growth and expand their scope of services.”


“The EDS team has built a best-in-class service business that understands their customers’ needs and addresses them in a high value-add, low cost manner,” said John Griggs, Managing Director of CSL. “We at CSL specialize in the energy services space, and EDS is a true innovator in the field.”


EDS was represented in this transaction by Farlie, Turner & Co.


About Environmental Drilling Solutions


Environmental Drilling Solutions (EDS), with headquarters in Lafayette, Louisiana, provides solids control services using its proprietary, patent-pending mobile and skid-mounted equipment in the Woodford, Granite Wash, Marcellus, Utica, Eagle Ford, Mississippi Lime, and Wolfberry; it is also increasing its presence in the Gulf of Mexico with innovative and safer techniques for collecting drill cuttings offshore. EDS employs over 250 trained staff members including experienced field service engineers to ensure professional installations and service to ensure trouble-free equipment and service to our customers. EDS also provides rig vacuum systems, storage tanks, pressure washers, and other related equipment and services.


About Element Partners


Element Partners is a leading growth equity firm investing in high-growth companies offering innovative products and services to the global energy, industrial, and environmental markets. Element has a long history of providing companies with the financial resources, industry contacts, and strategic insights necessary to maximize growth and shareholder return.  Element’s team has successfully managed over $1.25 billion in capital commitments spanning six investment partnerships, making Element one of the earliest and most experienced investors in energy and industrial technologies.


About CSL Capital Management


CSL Capital Management is a leading growth equity firm with a value oriented investment strategy focused on energy businesses in the U.S. and internationally. The CSL team has deep sector expertise in the energy industry and takes a very hands-on approach to investments, relying on fundamental growth and strategic thinking, rather than financial engineering, to generate success. Through several investment vehicles, the firm currently manages approximately $600 million in equity capital and commitments.