Private Equity firm Avista Capital Partners is to acquire Top-Co Inc, a privately-held, designer and manufacturer of specialised casing cementing products used in the drilling and completion of oil, natural gas and geothermal wells.
Top-Co serves a diverse global customer base comprised of E&P and national oil companies, multinational service companies and North American and international agents and distributors. Terms of the transaction, which is expected to close in the second quarter of 2012, were not disclosed.
Trevor Turbidy, an Energy Industry Advisor with Avista, says: "We are delighted about our new partnership with Top-Co. With its highly experienced management team led by Gerald McLaughlan, the Company’s robust casing hardware product offering, technology-driven client focus and best-in-class testing facility, Top-Co is well positioned to continue to capitalise on several key oil and gas industry trends, including increased horizontal drilling, longer laterals, deeper wells and a greater number of frac stages per well, all of which will increase demand for the Company’s products. We look forward to supporting the Top-Co team as they deliver on their long-term strategic plan, capitalise on near-term growth opportunities and continue to capture additional global market share in the casing hardware market."
Gerald McLaughlan, CEO of Top-Co, says: "Our company has systematically prepared for profitable growth in domestic and international markets, and the active participation of Avista Capital Partners will enhance our ability to execute key strategies and meet our goals. Avista’s support, international experience and energy sector expertise will be invaluable as we capitalise on attractive opportunities in our niche domestic and international markets, facilitated by the near-term commercialisation of a state-of-the-art manufacturing facility in China."
Allen Yurko, an Industrials Industry Advisor with Avista, says: "Top-Co has a very strong reputation in Canada and has been successful in penetrating other markets, particularly the US. We look forward to working with the Company as it continues to build its global brand and expand internationally as well as establish incremental manufacturing operations in key foreign markets."
CIBC World Markets Inc served as financial advisor and Burnet, Duckworth & Palmer LLP served as legal advisor to Top-Co. Weil, Gotshal & Manges LLP and McCarthy Tetrault LLP both served as legal advisor to Avista.