Aegis provides oil and gas production chemicals and chlorine dioxide treatment services to customers in major oilfield markets, with a particular focus on the Permian Basin of West Texas and Southeastern New Mexico.
The transaction merges Aegis with Mid-Chem, a Midland, Texas-based production chemicals business, and positions Intervale as the majority owner of Aegis.
Although financial terms of the deal were not disclosed, Intervale typically invests in businesses with between $8m and $50m of trailing twelve-month EBITDA, according to its website.
“We are very pleased to partner with an excellent team at Aegis to grow the company into a premier independent oilfield chemicals provider,” Intervale managing partner Charles Cherington said. “We believe there is a tremendous opportunity for Aegis to expand its products and services within its existing Permian Basin footprint and to other major producing regions.”
Intervale said it plans to invest additional capital to expand Aegis’s geographic reach and to strengthen its product and service offering.
Existing Intervale portfolio companies include completions equipment and services business TEAM Oil Tools, Allied Oil & Gas Services, which specialises in cementing and acidising services, and Scottish offshore and subsea equipment and services company Proserv.
Proserv recently completed a $215m refinancing consisting of a term loan and revolving credit facility, which is being supported by HSBC, Lloyds, Barclays, Santander, Wells Fargo and RBS will be used to pay down existing debt, pursue new acquisitions and support the company’s growth.
Intervale Capital is an energy-focused private equity firm with headquarters in Cambridge, Massachusetts, and an office in Houston, Texas.
The firm invests exclusively in mid-market oilfield services and manufacturing companies and related technologies, and has more than $650m under management.
Intervale is currently investing though its second fund, which closed in September last year $26m above its hard cap on $376m.
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