Riverstone Holdings has signed an agreement to acquire Utex Industries, a manufacturer of engineered sealing products, from Rhône Capital. Rhône Capital acquired Utex from The Audax Group in December 2010.
“This investment is consistent with Riverstone’s prior investments in niche manufacturing companies that provide engineered consumable products for which demand is driven by the increasing challenges of deeper, higher-pressure, and more service-intensive oil and gas drilling and production operations. Mike and his talented team have amassed an impressive track record of success and we look forward to partnering with him and the company to build on that record,” said John Lancaster, a Partner at Riverstone.
Utex Industries is a manufacturer of engineered sealing and other specialty products used in a variety of applications and equipment related to onshore and offshore oil and gas drilling and production, power, mining, water treatment, and other industrial sectors. Many of the company’s products are used in severe operating environments, where high pressures and temperatures present particular challenges that require unique and customized solutions. A majority of the company’s products are “consumables” with short life-cycles requiring replacement at regular intervals to avoid failure in critical, capital-intensive applications. The company was founded in 1940 and is based in Houston (www.utexind.com).
“The management team at Utex is excited to establish this new partnership with Riverstone. We have great respect for the management team of Riverstone who clearly understands Utex’ end markets and long history of providing quality sealing and other engineered products for its customers’ most critical applications. I’d also like to thank the Rhône team for being great partners to Utex over the past few years, fully supporting our business plan and helping us select the perfect partner for the next phase of our growth and development as a company. We look forward to the next phase of Utex’s development with Riverstone as our partner,” said Mike Balas, CEO of Utex, who will continue as CEO following the closing of the transaction.
Riverstone Holdings has approximately $24 billion of capital under management across seven investment funds. Riverstone invests in midstream, exploration & production, oilfield services, power and renewable sectors of the energy industry. The firm was founded in 2000 and has offices in New York, Houston and London (www.riverstonellc.com).
Rhône is a global private equity firm with more than €3 billion under management and a focus on private equity investments in businesses with a pan-European or transatlantic presence and expansion prospects. Rhône has currently holds investments in a diversified portfolio of companies including investments in the consumer, chemical & material, energy, industrial, and shipping industries. The firm was founded in 1996 and has offices in London and New York (www.rhonegroup.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 3-7-13