Houston’s OFS Energy Fund, a private-equity firm, closed the sale of Vision Oil Tools LLC to BEA Logistics Services LLC, a wholly owned subsidiary of B/E Aerospace Inc. (NASDAQ: BEAV), for up to $180 million, the companies announced April 16.
The OFS Energy Fund is one of the few professionally managed private-equity firms that specialize in acquiring and recapitalizing lower middle-market energy service companies.
Vision operates in two segments: rental tools and fishing services. The company has conventional fishing tools and systems and can “assist in any type of fishing application–no matter what’s in your well,” it says on its website.
B/E is the world’s leading manufacturer of aircraft cabin interior products and the world’s leading provider of aerospace fasteners, consumables and logistics services.
B/E has a market capitalization of about $9 billion, and in 2013, sales were $3.5 billion.
The acquisition purchase price, including expenses, is about $145 million. An additional payment of some $35 million may be paid in 2015 subject to Vision achieving certain financial results during 2014.
B/E’s acquisition furthers its goal to expand its consumables management segment into the oilfield rental equipment, logistics and services business, the companies said in an April 16 press release.
B/E’s principal customers are the operators of commercial and business jet aircraft, aircraft manufacturers and their suppliers. In 2013, it expanded its consumables management segment with oilfield equipment rental, logistics and services to support North American land-based oil and gas drilling activities.
In a January earnings call, B/E forecast that first-quarter 2014 earnings, per diluted share, would increase about 15% year-over-year.
The company said growth would come from various business segments including “significant contributions from the oilfield rental equipment and services business.”
Gary Roberts, Vision’s CEO, and the rest of Vision’s management team will remain with the business after the transaction.
OFS was first introduced to Roberts in Denver in January 2012. Within 90 days, OFS completed due diligence and executed a two-step transaction financing Roberts’ buyout of his existing partners in Vision, and executed a majority recapitalization of Vision with Roberts rolling a significant minority stake.
In September 2012, Vision expanded its operations into the Colorado market by purchasing COO Brad Hayden’s business, Piceance Fishing & Rentals. Vision then expanded organically into the Texas market in 2013 by adding locations in San Angelo and Weatherford.
“It has been our pleasure to work with Gary, Brad Hayden and the Vision team to rapidly grow the business with a successful outcome for all shareholders.” said Bruce Ross, managing partner of OFS. “We wish them the best as they move forward with B/E.”
Roberts said OFS’ partnership enabled the company to grow.
“Over the past two years, we expanded our geographic footprint from North Dakota and Wyoming into Colorado and Texas and increased our asset base five-fold,” he said.”
Vision provides rental tools and fishing services to its customers in the North Dakota, Wyoming, Colorado and Texas oil and natural gas industry. The company was founded in 2000 and is based in Houston.
Simmons & Co. International served as exclusive financial advisor to Vision in the transaction.
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