BIRMINGHAM, Ala. – The Principals of Founders Investment Banking, LLC (Founders) announced today it exclusively advised Spartan Energy Services, LLC (Spartan) on a successful majority recapitalization with Harren Equity Partners, a private equity firm based in Charlottesville, Va. The transaction closed on December 28, 2012, and was led by Founders’ Managing Director Duane Donner.
Spartan Energy Services, based in Lafayette, La., is an oilfield services business providing downhole thru tubing, fishing and flow control services to the major shale markets throughout North America. Spartan has exhibited remarkable growth while building one of the strongest reputations for quality and service in its industry sector. The majority recapitalization will establish a more stable capital base to support continued rapid growth and expansion. The partnership will also provide a strong, experienced, value added team of investment professionals who can assist the company with strategic and corporate support at a board level. The management team achieved meaningful liquidity but retained nearly half of the equity in the business and willremain completely intact. Management’s plan is to leverage its new capital structure to fund growth and expansion into new basins while providing increased infrastructure development throughout the company.
“I am enthusiastic about the partnership with Harren,” said Delmar Crochet, CEO of Spartan. “I am impressed with their team, industry reputation and approach, and am confident that they are the right partner to help us grow our business to the next level. It is also nice to reward the hard work of our key employee shareholders with a first bite of the apple.”
Jonathan Earnhardt, Partner at Harren Equity added, “Delmar has done a great job recruiting an incredibly talented and experienced group of thru tubing and flow control employees, which has enabled Spartan to rapidly expand into several key shale plays and serve an impressive roster of blue chip customers. We are excited to be partnering with Delmar and his team, and look forward to working together with them to continue Spartan’s track record of impressive growth.”
For over a decade, Founders has worked closely with Spartan’s CEO, Delmar Crochet in a comprehensive approach to acquire, build and grow several successful and valuable oilfield services companies. “I have a long-standing relationship with Founders,” said Crochet. “Duane and his team have a deep understanding of our industry and how to put together successful deals in the Oil & Gas Sector. Their personal attention and trusted guidance has played a critical role in preparing us for this process and achieving another successful transaction.”
Donner stated “Delmar is a great leader and talented CEO, and he and his management team have built a tremendous company based on quality, integrity, and excellence in the oilfield. These sound business principles combined with attracting the best hands in the industry ensure continued success. I am excited about the partnership between Harren and Spartan, two very high quality outfits. The best is yet to come for Spartan.”
In 2000, Founders assisted Crochet in recapitalizing Tornado Thru Tubing Services, LLC with the company’s founder, Scott Kirchoff. Together they grew the company, for which Founders ultimately facilitated a sale to Oil States International Inc. (OIS: NYSE) a large, publicly-traded oilfield services provider.
Pictured: A Spartan Energy Hydraulic frac job in the Haynesville Shale.
About Founders Investment Banking, LLC
Founders Investment Banking is a merger and acquisition advisory firm based in Birmingham, Alabama. Its team’s proven expertise and process-based solutions help companies and business owners access capital and prepare for and execute liquidity events to achieve specific financial goals. The firm’s practice areas include aGeneral Transaction Practice, which serves clients from a variety of industries located in the Deep South, an Oil and Gas Services Practice focused on the U.S. oilfield services sector, and an Internet & Digital Media Practicethat serves clients operating nationwide in the Internet and digital media sector. In order to assist Founders Investment Banking with securities related transactions, including this transaction, its Principals are registered investment banking agents of Burch & Company, Inc., member FINRA/SiPC. Burch and Founders are not affiliated entities. The testimonial presented herein does not guarantee future performance or success.
About Spartan Energy Services, LLC
Spartan Energy Services is a rapidly growing multi-basin energy services company that provides downhole thru tubing, fishing, and flow control services throughout the major U.S onshore shale markets. Led by industry veteran CEO Delmar Crochet, Spartan has exhibited remarkable growth while building one of the strongest reputations for quality in the industry.
About Harren Equity Partners
Harren Equity Partners is a private investment firm dedicated to the growth and development of industryâ€leading companies through the creation of strong partnerships with outstanding management teams. Harren’s unique approach focuses on operational excellence and insightful strategic analysis, rather than financial engineering. The principals of Harren have significant operating experience and work closely with portfolio company management teams to continue to grow companies and improve profitability. Harren focuses on investment opportunities in the lower middle market, in a broad range of industries.