Pelican Energy Partners has a made a growth equity investment in Johnson Specialty Tools in partnership with Craig Johnson, the company’s President.
Johnson Specialty Tools (JST) specializes in the rental of drilling support equipment such as pre-mix mud tanks, mud vacs, transfer pumps, drill pipes, power washers and other similar equipment. The company’s equipment is typically used for containing, controlling and managing both oil and water-based mud on drilling locations. In October 2015, JST acquired Texas Equipment Rental which provides equipment and services to a number of energy companies in the Permian Region, the Eagleford Region and the East Texas/North Louisiana Region. JST is headquartered in Houston with additional locations in Pleasanton, TX and Midland, TX. The company was founded by Craig Johnson and his son Brett Johnson in December 2014 (www.johnsonst.net).
Pelican’s growth equity investment in JST will be used to fund both organic growth opportunities and for strategic acquisitions. “Since its founding in 2014, JST has built a solid reputation for quality service with exceptional people and equipment. We are excited to now partner with a dedicated energy fund that will bring additional experience and deep industry knowledge to our team during this period of growth,” said Craig Johnson.
Earlier in his career, Craig Johnson founded Stallion Oilfield Services in 2003 and served as its Chief Executive Officer and President through 2014. Stallion is one of the largest providers of equipment rentals and logistics services to the North American oil and gas industry. During the rapid downturn in the energy markets beginning in 2009, Stallion filed for bankruptcy (pre-packaged) and later became a portfolio company of Centerbridge Partners and Littlejohn & Co.
Pelican Energy Partners invests in small to middle-market, high growth potential energy service and equipment companies. Target companies typically have annual EBITDA between $1 million and $10 million. The investment in JST represents Pelican’s fourth Fund II investment in addition to Epic Industrial Solutions, Global Heat Transfer, and Quinn Artificial Lift Services. Fund II closed in July 2016 with $210 million of capital. Pelican Energy Partners is based in Houston (www.pelicanenergypartners.com).
© 2017 Private Equity Professional | May 31, 2017
