Blue Sage Exits Cobalt Environmental

Blue Sage Capital has closed the sale of Cobalt Environmental Solutions to Bison Oilfield Services, an Oklahoma-based water infrastructure, logistics and solutions provider.

Cobalt Environmental Solutions is an operator of oilfield wastewater disposal and hydrocarbon extraction facilities in the South-Central Oklahoma Oil Province (SCOOP) and Merge fields (the Merge field is located adjacent to the SCOOP field) in Oklahoma’s Anadarko Basin. Cobalt is headquartered in Ardmore, OK. Blue Sage created Cobalt as an oilfield waste platform in April 2014. Over the next five years, Blue Sage assisted Cobalt with the subsequent development of five additional greenfield facilities and partnered with management to establish long-term commercial relationships with key producers in the region. During the period in which Blue Sage owned Cobalt, revenue grew by approximately 3x.

“We were delighted to partner with CEO Patrick Brandt, COO Jonathan Hood and the rest of the Cobalt team to build a high-quality oilfield waste disposal operator in Oklahoma. From the initial acquisition of a single facility, our team was able to build one of the leading saltwater disposal businesses in the region, providing reliable, high-capacity service to the largest exploration and production players,” said Jonathan Pearce, a partner of Blue Sage.

Blue Sage specializes in growth, recapitalization and buyout financings of smaller middle-market companies. Most of Blue Sage’s investments are in established, profitable companies with $20 million to $125 million of revenue and $4 million to $12 million of EBITDA. Blue Sage invests in a variety of industries, with each initial investment in a company ranging from $20 million to $40 million. Sectors of specific interest include niche manufacturing, environmental solutions or specialty services. The firm is based in Austin, TX (www.bluesage.com).

“Given our extensive experience in oilfield and environmental services, our Blue Sage deal team was able to create what we believe is a successful company from scratch during the last five years by leveraging our prior experience as well as the support of Cobalt’s Chairman John Barnidge,” said Peter Huff, a Blue Sage managing member. “The Cobalt investment represents the third time that we have successfully partnered with John. We believe the company’s growth has been exceptional, and we are excited to follow the next stage of Cobalt’s evolution under Bison’s leadership.”

Bison Oilfield Services is one the largest privately held energy services company in Oklahoma. The company’s services include wastewater disposal, trucking and logistics, environmental services, pipeline construction, midstream manufacturing and fabrication, fishing and rental tools, and a range of other energy infrastructure services. The company is headquartered in Oklahoma City, OK (www.bisonok.com).

© 2019 Private Equity Professional | May 21, 2019

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