Founders Investment Banking, LLC Advises on Formation of Oilfield Services Company
Founders Investment Banking, LLC (“Founders”) is pleased to announce that it recently acted as exclusive financial advisor to the shareholders of Spartan Energy Services, LLC (“Spartan”) on the formation and capitalization of the business. Based in Lafayette, LA, Spartan DBA Spartan Thru Tubing Services, LLC, is an employee-owned, growth-focused oil and gas services business serving the major downhole, thru tubing, and fishing markets in North America.
Founders worked closely with industry veteran and CEO of Spartan, Delmar Crochet, to develop a comprehensive business plan and financial model, coordinate legal documents, and secure a meaningful capital commitment with favorable structure and terms. As an equity owner and advisor, Founders will continue to play an ongoing role as sounding board to Mr. Crochet and the shareholders of Spartan, and will continue to provide corporate advisory services including strategic planning and capital budgeting in addition to serving on the Board of Advisors. “My relationship with the Founders team goes way back,” says Mr. Crochet. “Duane helped my partner and me acquire Tornado Thru Tubing Services, LLC in 2002, which Founders ultimately sold to a large publicly-traded oilfield services provider for a strong valuation. It was a great deal that resulted in a very substantial ROI for our team. Duane and I have kept in touch over the years, always looking for the next opportunity. I felt like the timing was right to make a move, so I engaged Founders to help me plan and execute the process, and they have played a critical role in this formation.
The recent industry downturn provided a unique opportunity for a well-capitalized and well-managed independent operator to enter the market,” says Founders Managing Partner, Duane Donner. “Delmar Crochet is a very talented and capable entrepreneur, and I have the utmost confidence in his leadership. Although there may be near-term challenges in the natural gas market, overall macro fundamentals bode well for natural gas pricing and demand long-term. We believe the well-rationalized plan, combined with Spartan’s proven management team and the meaningful equity capital commitment, will enable the company to move quickly and create substantial value for shareholders. We look forward to what the future has in store for the Spartan team.