NEW YORK–Wellspring Capital Management LLC (“Wellspring”) today announced that it has sold its portfolio company OMNI Energy Services Corp. to Gibson Energy Inc. (TSX: GEI) in a transaction valued at $445 million.
Wellspring acquired OMNI in October 2010 in a take-private transaction valued at $122 million. At the time, OMNI operated primarily in the Gulf of Mexico and surrounding areas. During Wellspring’s ownership, OMNI implemented a range of organic initiatives and strategic acquisition through which it expanded in the most prolific oil producing regions in the United States: the Bakken basin in North Dakota; the Anadarko basin in Oklahoma; the Niobrara basin in the Rockies; and the EagleFord basin in Texas.
William F. Dawson, Jr., a Managing Partner of Wellspring, said, “We are very proud of what OMNI accomplished under our ownership. As a result of several strategic growth initiatives, the company capitalized on the increasing demand for its environmental services resulting from the significant increase in domestic oil production. We are pleased that this successful investment will deliver an attractive return for our limited partners.”
Joshua C. Cascade, a Partner of Wellspring, added, “The OMNI management team, under the leadership of Brian Recatto, has done an exceptional job executing our shared vision. Their efforts have significantly enhanced the value of OMNI and positioned the company for continued growth. We congratulate the team and wish them, along with all of OMNI’s employees, continued success as part of Gibson.”
Brian J. Recatto, President and Chief Executive Officer of OMNI, said, “Wellspring has been an ideal partner for OMNI. During the past two years we have received the strategic, financial and operational resources necessary to implement our growth strategy and capitalize on very attractive market opportunities. We are grateful for their support.”
UBS Investment Bank and BlackArch Partners served as financial advisors to Wellspring and OMNI with respect to the transaction, and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel.
About Wellspring Capital Management
Wellspring Capital Management, founded in 1995, is a leading middle-market private equity firm that manages more than $3 billion of private equity capital. The firm’s objective is to bring partnership, experience and value creation to each investment. By teaming up with strong management, Wellspring is able to unlock underlying value and pursue new growth opportunities through strategic initiatives, operating improvements and add-on acquisitions. The firm functions as a strategic rather than tactical partner, providing management teams with top-line support, M&A experience and financial expertise, and access to resources. For additional information, please visit www.wellspringcapital.com.
About OMNI Energy Services Corp.
OMNI Energy Services Corp., based in Carencro, LA., provides environmental and production services to the oil and gas industry, organized around four primary business segments: Environmental Services and Fluid Handling, Wellsite Maintenance Services, Exploration Support Services and Accommodations. The company’s core businesses are focused on the complex and non-discretionary environmental compliance and maintenance needs of exploration and production companies.
Gibson is one of the largest independent midstream energy companies in Canada and a major participant in the crude oil transportation business in the United States, and is engaged in the movement, storage, blending, processing, marketing and distribution of crude oil, condensate, natural gas liquids, and refined products. Gibson transports hydrocarbons by utilizing its integrated network of terminals, pipelines, storage tanks, and truck fleet located throughout western Canada and the United States. Gibson is also involved in the processing, blending and marketing of hydrocarbons, provision of water disposal and oilfield waste management services and is the second largest retail propane distribution company in Canada.
KEKST AND COMPANY
Mark Semer / Micheline Tang