Hastings Equity Partners has sold Fluid Management Holdings and CP Well Testing (collectively CP Energy Services) to Prospect Capital Corporation for approximately $105 million.
Fluid Management Holdings provides water hauling, disposal and acid services for oil & gas exploration and production companies in the Texas Panhandle and Western Oklahoma. The company operates under the names of ProHaul Transports and Foster Testing. The company is headquartered in Weatherford, OK (www.prohaul.us).
CP Well Testing provides flowback and well testing services in support of oil & gas exploration and production companies in the Granite Wash, Permian and Cana-Woodford plays. The company is headquartered in Elk City, OK (www.cpwelltesting.com).
“We appreciate the contributions that the Hastings team has made to CP Energy Services over the past two years and look forward to our new partnership with Prospect Capital,” said Craig Wright, Chief Executive Officer of CP Energy Services.
“Hastings couldn’t be more appreciative of the hard work and energy exhibited by the CP Energy Services leadership team and the impressive achievement of integrating five separate companies over the past two years,” said Ted Patton, Managing Director of Hastings Equity Partners. “This has led to the creation of the leading full service provider of water management solutions in Western Oklahoma and the Texas Panhandle, a vision we set out to achieve when we made our first investment in this region two years ago. Prospect Capital is the right partner to help grow this business to the next level.”
Hastings Equity Partners invests from $5 million to $15 million in niche manufacturing, distribution, and business services companies with EBITDAs from $2 million to $10 million. The firm is based in Waltham, MA (www.hastingsequity.com).
“CP Energy is led by a strong management team that we have gotten to know well over the past year through our involvement as a lender to CP Well,” said Mark Hull, a Principal with Prospect Capital Management. “The integration of flowback services with fluid hauling and disposal is highly compelling and expected to enhance the overall service offering to customers. Prospect is enthusiastic about supporting the management team in its investment and is pleased to provide Hastings Equity Partners, a valued sponsor relationship, with a monetization opportunity to support their fund raising.”
Prospect invests from $10 million to $75 million in private and micro-cap public businesses located in the US and Canada that have from $3 million to $30 million of EBITDA. Investment structures include: senior debt; unitranche debt; 2nd lien and mezzanine debt; and “one stop” debt and equity. The firm invests in wide array of industries and is effectively industry agnostic. T Prospect is located in New York (www.prospectstreet.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 8-6-13
