Blue Wolf Capital Partners has acquired Extreme Plastics Plus (EPP), an environmental containment company that serves the domestic oil and gas industry.
Impacted by the cyclical decline in the US energy markets, EPP filed for Chapter 11 bankruptcy protection on January 31, 2016. On October 20, Blue Wolf was named the stalking horse bidder for the assets of EPP by the United States Bankruptcy Court (Delaware) and prevailed in an auction held on November 17, 2016. The buy of EPP was made through Blue Wolf Capital Fund III, LP. Blue Wolf’s investment has allowed EPP to exit bankruptcy with a debt-free balance sheet and should position the company to benefit from an eventual oil and gas market recovery.
EPP provides a variety of environmental containment services including environmental liner installation, above ground storage tank rentals and composite mat rentals. Customers of EPP are oil and gas companies operating in the Marcellus, Utica, Eagle Ford, Permian and Mid-Continent basins. The company was founded in 2007 and is headquartered in Fairmont, WV with additional locations in Pennsylvania, Texas, Oklahoma and New Mexico (www.extremeplasticsplus.com).
This transaction is the first investment from a partnership Blue Wolf entered into earlier this year with K2 Energy Capital and its founder, Kevin Kuykendall, to pursue energy services investments. The current EPP management team, including Founder and President Bennie Wharry, will remain with the company.
“We believe EPP’s environmental containment solutions are best-in-class and will be in high demand as the energy sector gets back on track,” said Adam Blumenthal, Managing Partner of Blue Wolf. “We are excited to have closed our first investment with K2 and to work alongside Bennie and the entire EPP team as we steer the company towards long-term success.”
Blue Wolf invests in companies in which management of relationships with complex constituencies – such as government and labor – can change organizations and create value. The firm’s investment criteria are minimum revenues of $25 million; minimum transaction size of $20 million; and a minimum investment size of $10 million. The firm focuses its efforts on companies based in the United States and Canada. Blue Wolf is currently investing its third fund with $300 million in limited partner equity commitments. The firm is headquartered in New York (www.blue-wolf.com).
K2 Energy Capital invests in the energy services sector, including oilfield services, utility services, and equipment manufacturing. The firm is based in Dallas (www.k2energycapital.com).
© 2016 Private Equity Professional | December 21, 2016
