Axis Compressor Services acquired by ValorBridge Partners
a leading provider of generator rental, mechanical, and electrical services on rotating equipment in the on-shore and off-shore Gulf of Mexico energy industry
has been acquired by
Background
- Evangeline Securities (“Evangeline”) was engaged by Axis Compressor Services, LLC (“Axis” or the “Company”) to run an auction process for a majority sale
- The New Iberia, LA, based Company is a leading provider of generator rental, mechanical, and electrical services on rotating equipment in the on-shore and off-shore Gulf of Mexico energy industry
- Evangeline and Axis built a long-term relationship dating back to 2016 that culminated in the sale of the Company to ValorBridge Partners
- Evangeline provided Axis realistic expectations and suggestions to enhance valuation over the six-year relationship to collectively enter the market at a strategically advantageous time
Process
- Evangeline launched the sale process in a very challenging market for energy service companies in which bank financing proved extremely difficult to attain
- Despite the market headwinds, Evangeline’s efforts generated multiple offers in excess of the expected valuation range
Result
- Evangeline led the Company to a successful sale less than six months from the date of engagement
- ValorBridge Partners brought growth capital as well as abundant experience to facilitate the continued growth of the Company that was not feasible for the legacy owners’ risk profile
- Axis was extremely pleased with the auction result as Evangeline successfully advised the Company to reach the diverse goals of all three owners that included an immediate, structured exit and a meaningful participation in future upside growth