Managing directors Tom Willingham, left, and Mark Murray.
An arm of a local private equity firm has struck a deal in the mountains to broaden its holdings in the natural gas business.
Basin Energy Group, a portfolio company of downtown-based Turning Basin Capital Partners, last week closed on a deal to absorb Appalachian Production Services, a 22-year-old company in Abingdon that services existing natural gas and oil wells in Virginia, Kentucky, West Virginia, Pennsylvania, New York, Tennessee and Ohio.
The deal was structured as a merger, by which APS founder and CEO Frank Henderson took an equity stake in Basin Energy. Financial specifics of the deal, which closed Dec. 30, were not disclosed.
The addition of APS marks the fourth merger or acquisition completed by Turning Basin Capital and its affiliates since its founding in 2013. The company initially was an offshoot of Ewing Bemiss & Co., a local investment banking firm that was absorbed in 2015 by financial giant KPMG.
APS joins ProActive Services and Starett Energy Services within the fold of Basin Energy Group, all of which operate around Appalachia servicing and maintaining existing wells and pipelines.
“The combination of all these businesses, we believe, is one of the larger home-grown energy services companies focused on that region,” said Turning Basin Capital managing partner Mark Murray.
Turning Basin Capital’s other portfolio company is BBB Tank Services, a company it bought last year near Houston that services above-ground oil tanks.
Turning Basin Capital does small buyouts of companies specifically in the energy industry, including gas, power generation, electrical generation or distribution.
Courtesy of Turning Basin.
The company funds its acquisitions with the help of a recurring group of investors from Texas, the Southeast and in Virginia. It typically targets companies valued at $25 million and below.
“We’re looking for transactions that are below the radar of midstream middle market private equity groups,” said managing director Tom Willingham. “We see ourselves as a group that understands the energy sector well, and has the time and ability to get in and get these companies to grow up past the ceiling their running into under a founder/owner.”
The company looks to exit its investments by selling to other parties, including larger private equity firms.
Willingham and Murray said they are in constant stages of discussions with potential target companies and hope to complete two or three more deals this year, including continuing their pursuit in the natural gas field.
“For a variety of reasons, we’re very bullish on natural gas,” Willingham said. “It’s displacing coal for power generation.”
APS was advised in the deal by Global Growth Partners of Charlotte, North Carolina.
Managing directors Tom Willingham, left, and Mark Murray.
An arm of a local private equity firm has struck a deal in the mountains to broaden its holdings in the natural gas business.
Basin Energy Group, a portfolio company of downtown-based Turning Basin Capital Partners, last week closed on a deal to absorb Appalachian Production Services, a 22-year-old company in Abingdon that services existing natural gas and oil wells in Virginia, Kentucky, West Virginia, Pennsylvania, New York, Tennessee and Ohio.
The deal was structured as a merger, by which APS founder and CEO Frank Henderson took an equity stake in Basin Energy. Financial specifics of the deal, which closed Dec. 30, were not disclosed.
The addition of APS marks the fourth merger or acquisition completed by Turning Basin Capital and its affiliates since its founding in 2013. The company initially was an offshoot of Ewing Bemiss & Co., a local investment banking firm that was absorbed in 2015 by financial giant KPMG.
APS joins ProActive Services and Starett Energy Services within the fold of Basin Energy Group, all of which operate around Appalachia servicing and maintaining existing wells and pipelines.
“The combination of all these businesses, we believe, is one of the larger home-grown energy services companies focused on that region,” said Turning Basin Capital managing partner Mark Murray.
Turning Basin Capital’s other portfolio company is BBB Tank Services, a company it bought last year near Houston that services above-ground oil tanks.
Turning Basin Capital does small buyouts of companies specifically in the energy industry, including gas, power generation, electrical generation or distribution.
Courtesy of Turning Basin.
The company funds its acquisitions with the help of a recurring group of investors from Texas, the Southeast and in Virginia. It typically targets companies valued at $25 million and below.
“We’re looking for transactions that are below the radar of midstream middle market private equity groups,” said managing director Tom Willingham. “We see ourselves as a group that understands the energy sector well, and has the time and ability to get in and get these companies to grow up past the ceiling their running into under a founder/owner.”
The company looks to exit its investments by selling to other parties, including larger private equity firms.
Willingham and Murray said they are in constant stages of discussions with potential target companies and hope to complete two or three more deals this year, including continuing their pursuit in the natural gas field.
“For a variety of reasons, we’re very bullish on natural gas,” Willingham said. “It’s displacing coal for power generation.”
APS was advised in the deal by Global Growth Partners of Charlotte, North Carolina.