Transition Capital Partners (TCP) has closed the sale of its portfolio company, LT Energy Services, to B/E Aerospace. The sales price of the transaction was not disclosed, but TCP acquired LT Energy Services in Aril 2012 for approximately 4x EBITDA and sold to B/E Aerospace for approximately 6x EBITDA.
LT Energy Services provides rental equipment and temporary office/housing systems to oil & gas producers. The company is based in Houston (www.ltenergyservices.com).
During the term of ownership, TCP grew LT by providing growth capital and strategic direction, while also strengthening the management team, internal systems and processes. As a result, the company expanded from 10 employees with one field location in the Haynesville Basin in Northern Louisiana, to more than 100 employees across five locations operating in three regions, including the Eagle Ford basin in South Texas and the Colony Granite Wash region in Oklahoma.
The sale of LT Energy Services to B/E Aerospace was led by TCP Managing Director Kevyn DeMartino and TCP Principal Jake Williams.
Transition Capital Partners invests in companies that have revenues under $50 million and are active in the energy, business services, niche manufacturing, consumer products, healthcare, and consumer finance sectors. The firm was founded by Dan Patterson in 1993 and is based in Dallas (www.tcplp.com).
Houlihan Lokey served as the exclusive sell-side financial advisor to LT Energy Services and Locke Lord acted as corporate legal counsel.
© 2014 PEPD • Private Equity’s Leading News Magazine • 1-31-14