Imperative Chemical, a portfolio company of Hastings Equity Partners, has agreed to merge with RSI Chemicals, a portfolio company of One Equity Partners (OEP). Hastings will be the majority owner of the combined business.
Imperative Chemicals is a provider of completion chemical, acid stimulation, and capillary injection products that are used by upstream and midstream oil, gas, and water customers. The company also offers field technical services, lab services, manufacturing and logistics, and program management. Midland, Texas-headquartered Imperative has over 550 employees and 32 locations in Texas, New Mexico, Oklahoma, Illinois, North Dakota, and Colorado.
Imperative was formed by Hastings in 2019 through the merger of three of its portfolio companies – WadeCo Specialties (2014), Impact Chemical Technologies (2016) and FloCap Injection Services (2017). Additional add-on acquisitions made by WadeCo include Elite Treating (2014), Select Chemicals (2014), Escudero Chemicals (2015), and Desert Downhole Tool (2016). Since Hastings’ initial Fund III investment in WadeCo in 2014, Imperative’s revenues have increased over 10x through these add-on acquisitions and organic growth.
RSI Chemicals (Refinery Specialties, Inc.) is a provider of oilfield services with a focus on formulating, manufacturing and providing specialty oil and gas chemicals. RSI also provides acidizing, remedial pumping, hot oiler services, and technical consulting services. RSI, with more than 270 employees, operates a headquarters and blending facility located near Houston in Hempstead, Texas. The company also operates regional laboratories, blending facilities, and field offices in Texas, Oklahoma, North Dakota, and Arkansas.
Post-closing, the combined companies will be led by Imperative’s COO Ryan Havens as CEO, and RSI’s COO Garrett Tucker as COO. Curtis Bordelon, RSI’s current CEO, will be retiring after a distinguished career in the industry, and Neil Harrop, Imperative’s current CEO, will remain active with the business as a member of its board of directors.
“With both companies’ positive trajectories, Imperative has increasingly competed with RSI in the market. We have tremendous respect for their talented team, unique capabilities, and service philosophies. I am excited about the next chapter of combining our strengths, executing our plans, and growing our team as we build upon an exceptional customer base,” said Mr. Havens.
According to Hastings, the merger of Imperative and RSI – with complementary regional presence – creates one of the largest oil and gas production chemicals businesses focused on the United States land oilfield market.
“The combination of these two exceptional companies will change the landscape in the U.S. land oilfield chemicals market with cultural alignment, a quality management team, a talented and motivated workforce that execute flawlessly, and a combined product line that spans the chain of custody for all chemical needs for completions, flowback, production and midstream operations,” said Mr. Harrop.
“We are extremely proud of our partnership with management over the years and we are excited about this next phase of growth,” said Joe Conlon, a managing director at Hastings. “The combined company will more effectively serve existing customers and its ability to compete with the largest players in the sector will be enhanced.”
Houston-based Hastings invests in energy services and equipment companies (upstream, midstream, and downstream) with EBITDA from $4 million to $20 million. Hastings’ approach is to leverage the operational experience of the firm’s managers and investors, many of whom are active or former CEOs of Fortune 1000 companies.
OEP is a middle-market private equity firm focused on the industrial, healthcare, and technology sectors in North America and Europe. Typical equity investments range from $30 million to $300 million. The firm spun out of JP Morgan in 2015 and has closed more than 300 transactions worldwide since its founding in 2001. OEP has offices in New York, Chicago, Frankfurt, and Amsterdam.
In April 2022, OEP closed its latest fund, One Equity Partners VIII LP, with committed capital of $2.75 billion. The new fund was oversubscribed and closed above its increased hard cap.
© 2023 Private Equity Professional | February 28, 2023
