Production Specialty Services, Inc., based in Midland, Texas, is one of the largest industrial distributors of oilfield pipe, valves, fittings and other general supplies in the Permian Basin. The Company operates 17 supply stores located throughout West Texas, Southeastern New Mexico and its centrally located distribution center.
The owner desired to either sell the business outright to a strategic buyer or recapitalize the company with a strong private equity group, thus allowing him to obtain liquidity for a portion of his ownership. However, for tax planning purposes, it was very important to close the transaction by year end, approximately four months from engagement, a very tight timeline.
The Company engaged us as merger & acquisition sell-side advisor to create and manage a company sale process. In less than three months, we aggressively marketed the business, solicited interest from a number of qualified buyers including strategic buyers and private equity groups, negotiated favorable terms with MRC Global and successfully closed the transaction by year end. We overcame the unique challenges and quickly executed a company sale that provided the owner substantial liquidity, far surpassing his expectations.