Pelican Energy Partners, a private equity firm focused on the oilfield services and equipment sector, has completed a majority recapitalization of Global Heat Transfer.
Global Heat Transfer (GHT) manufactures and repairs radiators, oil coolers, gas coolers and industrial cooling systems used in oil and gas, mining and power generation applications. The company was founded in 1978 and has 17 locations in 7 countries with main operations in Edmonton and Houston (www. GlobalHeatTransfer.com).
“This investment allows us to accelerate our plans to invest in quality, engineering, product development and additional personnel,” said Randy Vanberg, GHT’s President. “The partnership will also allow us to relocate to a new high capacity facility in Houston as well as significantly expand our inventory. Pelican brings decades of oilfield experience to the GHT team. It was very important to us to add partners that understand our industry and our customers’ challenges.”
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 GHT represents Pelican’s third Fund II investment in addition to Epic Industrial Solutions and Slingshot Supply. Fund II closed in July 2016 with $210 million of capital. Pelican Energy Partners is based in Houston (www.pelicanenergypartners.com).
“The vast majority of North America’s fracking equipment was built between 2007 and 2013 and, due to the combination of short-term equipment life cycles, changing technological requirements and downturn-related maintenance deferrals, is poorly equipped to return to service in today’s oilfield,” said John O’Brien, a Principal at Pelican Energy Partners. “GHT’s equipment, especially its Jumbotron product, is uniquely positioned to eliminate pump failure due to engine overheating while also providing significant cost savings from reduced downtime and less costly and less frequent maintenance. We are thrilled to partner with Randy, Derek and the entire GHT team and believe their differentiated product set and strong customer service focused culture are tremendous assets to the organization going forward.”
Piper Jaffray & Co., through its Simmons & Company International division (www.simmonspjc.com), was the financial advisor to Global Heat Transfer.
© 2017 Private Equity Professional | January 31, 2017
