Dallas-based private equity firm Lone Star Investment Advisors has sold Petroplex Acidizing to One Rock Capital Partners.
Aided by Lone Star, Petroplex expanded its major customer accounts, added product offering for key customers and more than doubled annual sales over five years, which represents a compound annual growth rate of 18 per cent.
The sale of the company resulted in a 50 per cent IRR and 6.24x cash-on-cash return to Lone Star.
Founded in 1981 by Larry Foster and headquartered in Texas, Petroplex is the largest provider of acidizing and chemical stimulation treatments for oil, gas and injection wells located in the Permian Basin – the largest and most prolific onshore oilfield in the continental US. Lone Star acquired Petroplex in October 2007.
"Petroplex’s highly experienced management team has been with the company for more than two decades. Their extensive operating experience in the Permian Basin and commitment to their customers, innovation and growth is why Petroplex is the largest and longest standing acidizing provider in that region," says Arthur Hollingsworth, managing director for Lone Star Investment Advisors. "We are proud to have partnered with Tony Cunningham, Petroplex CEO, and the rest of the management team."
Lone Star was represented by Julie Silcock and Mark Johnson of Houlihan Lokey’s Dallas office. Bruce Hallett of Dallas-based Hallett & Perin was the seller’s counsel.
