[Context: On March 1, Argonaut Private Equity announced the sale of of Falcon Flowback Services to Oil States International (NYSE: OIS). Falcon was acquired for $85m, according to an announcement by Simmons & Co. Further details, advisors and related links are below.]
Argonaut Private Equity Sells Falcon Flowback Services
TULSA, Okla.–March 01, 2018 –(BUSINESS WIRE)–Argonaut Private Equity, a middle market private equity firm, announced it has completed the sale of Falcon Flowback Services, LLC to Oil States International, Inc. (NYSE:OIS). Falcon is a full-service provider of flowback and well testing services for the separation and recovery of fluids, solid debris and proppant used during hydraulic fracturing operations.
Argonaut acquired Falcon in November 2015 during the energy downturn to serve as a growth platform to provide mission critical flowback services in the most economical and active onshore oil and gas basins. Subsequently, Falcon completed the strategic acquisitions of Erick Flowback Services and Rod’s Production Services in April 2016, which expanded Falcon’s presence into nearly every major oil and gas basin in the Lower 48 and significantly increased its asset base.
“Argonaut’s partnership with the founders of Falcon meant we could deploy our disciplined strategy of investing in well-positioned companies with strong management and significant growth opportunities,” Steve Mitchell, Argonaut’s CEO and managing director said. “Through this collaboration, we acted decisively to capitalize on strategic opportunities presented during the industry downturn which propelled Falcon from a start-up, regionally-focused flowback provider into an industry leader. Together, with the Falcon founders and management team, we were able to transform the company and position it to enter the next stage of growth with Oil States.”
Founded in 2002, Argonaut has deployed more than $3 billion of capital in over 100 direct investments with a focus on key industry sectors including: energy services, manufacturing and industrials. Headquartered in Tulsa, Argonaut is one of the largest private equity firms in the central United States.
“Argonaut has been a true partner to Falcon and integral to our success,” Brandon Crossley, Falcon’s co-founder said. “For the last several years, they have worked closely alongside us to support our growth efforts and provide strategic guidance for managing our unique industry dynamics.”
In July 2016, Argonaut raised $600 million in its Argonaut Private Equity Fund III. The fund focuses on a three-pronged approach of aligning the interests of investors, deploying capital and expertise, and transforming mid-market companies into much larger businesses.
Simmons & Company International, Energy Specialists of Piper Jaffray, acted as exclusive financial advisor and Frederic Dorwart, Lawyers, PLLC acted as legal advisor to Falcon and Argonaut during the sale process.
About Argonaut Private Equity
Founded in 2002, Argonaut Private Equity is a Tulsa-based private equity firm that manages investments across multiple asset classes with $3 billion of capital deployed in direct investments. With more than 100 investments, Argonaut has fostered an ongoing network of global relationships to discover and partner with best-in-class management teams, applying its experience and strengths to deliver solutions, generate value and propel growth.
Argonaut understands the unique needs of individual businesses that operate in the central region of the United States and other underserved markets. Argonaut partners with companies to develop a strategy for accelerating growth and enhancing operations. Leveraging the collective strength of its historical investment experience, industry advisors, current portfolio companies and affiliates, Argonaut looks to share resources, best practices and key relationships between investments to create synergistic opportunities across the following sectors: energy services, manufacturing and industrials.
In July 2016, Argonaut raised Argonaut Private Equity Fund III, a $600 million-dollar fund that focuses on investing in growth and mature companies looking for capital to unlock accretive value creation opportunities, with the aim of generating attractive investment returns through a disciplined approach and aligning interests of its investors and business partners.