Certain funds managed by affiliates of Apollo Global Management LLC (NYSE: APO) have bought a majority stake in Tidewater Logistics Corp., a logistics services company focused on the frack sand market, Tidewater said Feb. 15.
Tidewater Logistics said the capital investment by Apollo will fund a pipeline of new customer and expansion opportunities. The terms of the transaction weren't disclosed.
As part of the Apollo investment, Scott Prince will join the Tidewater Logistics team as the company’s newly-appointed CEO. Prince previously served as CEO of Pilot Thomas Logistics, a leading energy and industrial fuels and lubricants distributor.
“We are excited to work with Apollo and Scott Prince to accelerate investments that will enable us to expand our team and operations, and to continue to deliver best-in-class services to our rapidly expanding customer base across the U.S.,” Founder and President Scott Spence said in a statement.
Based in Fort Worth, Texas, Tidewater Logistics provides frack sand supply chain solutions, delivering procurement, transloading, last mile and wellsite operations services to E&P, pressure pumping and sand mining customers. The company delivers both discrete services as well as its integrated end-to-end sand supply chain management outsourced solution, in which Tidewater Logistics delivers optimized alignment, real-time visibility and consolidated invoicing across all frack sand activities.
“We believe Apollo’s deep energy industry experience and the financial backing by Apollo’s funds, combined with Tidewater Logistics’ frack sand supply chain expertise and unique ability to solve customer challenges, creates a powerful platform to serve the energy industry,” Prince said in a statement. “We look forward to continuing and enhancing Tidewater Logistics’ longstanding commitment to solving companies’ evolving frack sand challenges.”
Michael Jupiter, partner at Apollo, also commented: “We are excited to work with Tidewater Logistics to support and accelerate the continued growth of a premier provider of frack sand logistics services. We believe the company’s dedication to engineering effective solutions for its customers and its proven ability to deliver industry leading cost and service levels through its commercialized end-to-end sand supply chain management solution have created a tremendous pipeline of opportunities that we look forward to helping Scott Prince and Scott Spence execute.”
Tidewater Logistics operates across the major U.S. shale basins. According to the company release, operations are integrated by a central cloud-based management system, which enables the company’s supply chain team in Fort Worth to manage all rail, transload and truck activity with real-time data; run customizable reports for inventory management, operations or accounting; and process billing through the BOL download center.
Apollo is a global alternative investment manager with offices in New York, Los Angeles, Houston, Chicago, Bethesda, Toronto, London, Frankfurt, Madrid, Luxembourg, Mumbai, Delhi, Singapore, Hong Kong and Shanghai. The firm had assets under management of roughly $249 billion as of year-end 2017 in private equity, credit and real estate funds invested across a core group of nine industries, the release said.
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