Intervale Capital has signed a definitive agreement to sell Proserv Group Inc. to Riverstone Holdings LLC (“Riverstone”), an energy and power-focused private equity firm with over $27 billion of committed capital.
As part of the transaction, Riverstone Global Energy and Power Fund V, L.P., in partnership with Proserv management, will acquire 100% of the shares of Proserv from Intervale, Weatherford International and certain minority shareholders. Financial terms of the transaction were not disclosed. The transaction is subject to certain regulatory approvals and is expected to close in December.
Formed by Intervale through the acquisition and integration of several specialty subsea businesses between 2008 and 2014, Proserv is a global engineered products and services business focused on the offshore and subsea markets. The Company’s solutions include drilling control systems, subsea production systems, offshore production equipment, and marine technology services across the full life-of-field, with particular emphasis on brownfield upgrade and life extension. Headquartered in Aberdeen, Scotland, the Company is diversified by business division, between manufacturing and services, and geography, with operations across North and South America, Europe, West Africa, the Middle East, Asia and Australia.
David Lamont, CEO of Proserv , commented, “We are excited to partner with Riverstone, whose management team clearly understands the trends driving Proserv’s end markets, and the unique value proposition we bring to our customers.” Mr. Lamont will continue as CEO of Proserv following the closing of the transaction.
The Proserv transaction will be the fourth exit from Intervale’s first fund, which closed on $281 million in 2008. Exited investments include Ulterra Drilling Technologies (sold to ESCO Corporation in 2012) and Casedhole Solutions (sold to C&J Energy Services, Inc. in 2012). Intervale has $1.2 billion of committed capital and is actively investing out of its third fund, a $496 million fund raised in February of 2014.
Goldman Sachs & Company, Simmons & Company International Limited, Blackwood Partners LLP, and Norton Rose Fulbright acted as advisors to Intervale and Proserv on the transaction. Willkie, Farr & Gallagher LLP acted as legal advisor to Riverstone.