American Industrial Partners has completed the acquisition of SG Holdings I, LLC (SERVA), a designer and manufacturer of fracking equipment, from Wexford Capital.
SERVA is a designer and manufacturer of fracking equipment, coiled tubing equipment, and well intervention and workover equipment. The company’s products are sold primarily in the United States and to an increasing degree in Asia. SERVA manufactures and distributes coiled tubing, cementer, blender, frack and hydration units at its three manufacturing facilities in Tulsa (OK), Duncan (OK) and Calgary (Canada), and at its distribution facility located in Wichita Falls (TX). The company currently has 282 full-time employees. In addition to its North American operations, SERVA has established joint ventures in two Chinese businesses: SJS which produces pumps for fracking related equipment, fluid-end replacement parts, cementing units, data vans, and downhole tools; and SDS which produces downhole cementing tools. The company was founded in 1991 and is headquartered in Tulsa (www.servagroup.com).
“We believe SERVA is currently well positioned to participate in a recovery from what has been a cyclical low point of fracking equipment capital spending,” said Constantinos Coutifaris of AIP. “The company’s leading edge line of products allows SERVA to compete with differentiated offerings in many important end markets.”
American Industrial Partners invests in North American headquartered industrial companies with sales ranging from $100 million to $500 million. The firm was founded in 1989 and is currently managing more than $1.1 billion in equity capital. American Industrial Partners was founded in 1989 and is based in New York (www.americanindustrial.com).
“We believe that AIP will be a value-added partner for the company going forward,” said Jorge Amador of AIP. “In collaboration with management, we have developed a compelling operating agenda that will allow SERVA to continue to successfully meet oil and gas customer needs through engineering excellence and new product development.”
The seller of SERVA, Wexford Capital, is an investment advisor with over $4 billion of assets under management. Sectors of interest include bankruptcy/distressed, energy/natural resources, real estate, technology/telecommunications and transportation. The firm, which was founded in 1994, manages a series of hedge funds and private equity funds from its Greenwich, CT headquarters (www.wexford.com).
© 2014 PEPD • Private Equity’s Leading News Magazine • 5-15-14
