Target: Spring Industrial Holdings
Price: $200 million
Sponsor: First Atlantic Capital
Seller: The CapStreet Group
Financial Adviser: Seller: Edgeview Partners
Legal Advisers: Sponsor: Kirkland & Ellis; Seller: Vinson & Elkins
It’s been more than three decades since an oil refinery was built in the United States. While politicians fret about the implications for gas prices amid rising consumer demand, buyout shop
First Atlantic was joined on the deal by a handful of co-investors, including
The seller was The
Based in Houston, Sprint Industrial provides storage tanks capable of temporarily holding large volumes of liquid while refineries are being worked on. The company also performs safety inspections and repairs of refineries. Both services are being outsourced more often by big oil companies, giving Spring Industrial a natural path to organic growth, said Roberto Buaron, chairman and CEO of New York-based First Atlantic Capital.
What’s more, new environmental standards for gasoline require that chemicals be refined at higher temperatures. The added heat contributes to greater wear on aging facilities. “All the trends are point toward substantially more growth,” Buaron said. “This is a good platform for us.”
Edgeview Partners, the mid-market sell-side adviser that was recently acquired by CIT Group Inc., ran the auction for Sprint Industrial. CIT also arranged the senior credit package, although Edgeview treated the financing group as a third party, according to people with knowledge of the transaction.—J.H.