Intervale has agreed to sell Proserv, an energy technology services company, to Riverstone. No financial terms were disclosed. The deal is expected to be completed in December. Goldman Sachs, Simmons & Company International Limited, Blackwood Partners and Norton Rose Fulbright advised Intervale and Proserv on the transaction.
CAMBRIDGE, Mass., Oct. 23, 2014 /PRNewswire/ — Intervale Capital (“Intervale”), a private equity firm focused on the oilfield services industry, has signed a definitive agreement to sell Proserv Group Inc. (“Proserv” or the “Company”) to Riverstone Holdings LLC (“Riverstone”), an energy and power-focused private equity firm with over $27 billion of committed capital. As part of the transaction, Riverstone Global Energy and Power Fund V, L.P., in partnership with Proserv management, will acquire 100% of the shares of Proserv from Intervale, Weatherford International and certain minority shareholders. Financial terms of the transaction were not disclosed. The transaction is subject to certain regulatory approvals and is expected to close in December.
Formed by Intervale through the acquisition and integration of several specialty subsea businesses between 2008 and 2014, Proserv is a global engineered products and services business focused on the offshore and subsea markets. The Company’s solutions include drilling control systems, subsea production systems, offshore production equipment, and marine technology services across the full life-of-field, with particular emphasis on brownfield upgrade and life extension. Headquartered in Aberdeen, Scotland, the Company is diversified by business division, between manufacturing and services, and geography, with operations across North and South America, Europe, West Africa, the Middle East, Asia and Australia. For more information, please visit www.proserv.com.
Erich Horsley, Partner at Intervale, commented, “We are particularly grateful to David Lamont and the entire Proserv management team for the tremendous job building the Company into a leading global player in the offshore and subsea market.” Tuan Tran, Principal at Intervale, added, “We are proud of our association with Proserv and are confident that the Company will continue to thrive under Riverstone’s ownership. We are also pleased to achieve an attractive return for our investors.”
David Lamont, CEO of Proserv, commented, “We are excited to partner with Riverstone, whose management team clearly understands the trends driving Proserv’s end markets, and the unique value proposition we bring to our customers. I’d also like to thank Intervale and Weatherford for fully supporting our business over the past few years, and for helping us select Riverstone as the ideal partner for the next phase of our development.” Mr. Lamont will continue as CEO of Proserv following the closing of the transaction.
The Proserv transaction will be the fourth exit from Intervale’s first fund, which closed on $281 million in 2008. Exited investments include Ulterra Drilling Technologies (sold to ESCO Corporation in 2012) and Casedhole Solutions (sold to C&J Energy Services, Inc. in 2012). Intervale has $1.2 billion of committed capital and is actively investing out of its third fund, a $496 million fund raised in February of 2014.
Goldman Sachs & Company, Simmons & Company International Limited, Blackwood Partners LLP, and Norton Rose Fulbright acted as advisors to Intervale and Proserv on the transaction. Willkie, Farr & Gallagher LLP acted as legal advisor to Riverstone.
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), Tier 1 Energy Solutions (Canadian wireline and completions) and Recapture Solutions (flare remediation and power generation).
About Riverstone Holdings LLC
Riverstone is an energy and power-focused private investment firm founded in 2000 by David M. Leuschen and Pierre F. Lapeyre, Jr. with approximately $27 billion of equity capital raised. Riverstone conducts buyout and growth capital investments in the exploration & production, midstream, oilfield services, power and renewable sectors of the energy industry. With offices in New York, London, Houston and Mexico City, the firm has committed approximately $26 billion to 111 investments in North America, Latin America, Europe, Africa and Asia.