Riverstone/Carlyle Near Energy Deal

Target: Taylor Companies LLC

Sponsor: Riverstone Holdings LLC

Seller: The Halifax Group

Riverstone Holdings LLC is talks with the The Halifax Group to buy Taylor Companies LLC, a Mesquite, Texas-based company that delivers crude oil from oil wells to injection stations, storage terminals and oil refineries, according to a regulatory filing.

If the deal proceeds, the New York-based shop’s acquisition would come out of Riverstone/Carlyle Global Energy and Power Fund IV, a $6 billion energy fund closed in March, as peHUB, a sister publication of Buyouts, first reported. The fund is run in partnership with The Carlyle Group and invests in oil, gas and other energy-related businesses.

For Halifax Group, the deal would generate an exit for Halifax Capital Partners II LP, a $305 million fund the firm closed in 2006.

Taylor Companies, also called Taylor Logistics LLC, delivers oil from more than 14,000 wellheads a month, according to the company’s Web site. The company owns 77 pipeline injection stations located along various pipelines. Taylor also has a marketing business in which it acts as an intermediary to buyers and sellers of crude oil.

Halifax Group, a Washington, D.C.-based firm with offices in Dallas and Raleigh, N.C., bought Taylor Companies in September 2006 for an undisclosed amount. The firm typically invests in deals with enterprise values of between $20 million and $100 million that require equity commitments of $10 million to $40 million.

Founded in 2000, Riverstone Holdings manages approximately $17 billion across six funds. The New York-based firm does buyouts and growth capital investments in the midstream, exploration and production, oilfield services, power and renewable sectors of the energy industry.

James Ballengee, the CEO of Taylor Companies, retained a significant minority stake in the company after Halifax Group’s investment, although it is unclear if he will maintain that stake after the Riverstone Holdings investment.

Ballengee could not immediately be reached for comment. Executives Halifax Group and Riverstone Holdings declined to comment.