Blue Wolf acquires EPP assets
NEW YORK–(BUSINESS WIRE)–Blue Wolf Capital Partners LLC (“Blue Wolf”), the New York-based private equity firm, today announced that Blue Wolf Capital Fund III, L.P., an affiliate of Blue Wolf, has acquired the assets of Extreme Plastics Plus, Inc. (“EPP” or the “Company”), an environmental containment company that primarily serves the domestic oil and gas industry. On October 20, Blue Wolf was named the stalking horse bidder for the assets of EPP by the United States Bankruptcy Court, District of Delaware and prevailed in an auction held on November 17, 2016. Terms of the transaction were not disclosed.
EPP was founded in 2007, is headquartered in Fairmont, West Virginia and has additional locations in Pennsylvania, Texas, Oklahoma and New Mexico. The Company provides a variety of environmental containment services, including environmental liner installation, above ground storage tank rentals and composite mat rentals, to oil and gas companies operating in the Marcellus, Utica, Eagle Ford, Permian and Mid-Continent basins. Impacted by the cyclical decline in the U.S. energy markets, EPP filed for Chapter 11 bankruptcy protection on January 31, 2016.
Blue Wolf’s investment has allowed EPP to exit bankruptcy with a debt-free balance sheet and will position the Company for an eventual oil and gas market recovery. This transaction marks the first investment from a partnership Blue Wolf entered into earlier this year with K2 Energy Capital, LLC (“K2”) and its founder, Kevin W. Kuykendall, to pursue energy services investments. Current EPP management, including Founder and President Bennie Wharry, will remain with the Company.
Adam Blumenthal, Managing Partner of Blue Wolf, said, “We believe EPP’s environmental containment solutions are best-in-class and will be in high demand as the energy sector gets back on track. We are excited to have closed our first investment with K2 and to work alongside Bennie and the entire EPP team as we steer the company towards long-term success.”
Mr. Wharry added, “We are extremely pleased that Blue Wolf was named the buyer of the assets of EPP. This investment is the culmination of over eight months of collaboration between EPP, Blue Wolf and K2. Our new partners have shown a commitment to supporting our employees and to assisting us in the execution of our business plan. We believe that our partnership with Blue Wolf and K2, coupled with our debt-free balance sheet, will allow EPP to maintain its leading position in the market.”
About Extreme Plastics Plus Extreme Plastics Plus provides oilfield environmental containment services in the Marcellus Shale, Utica Shale, Eagle Ford, Permian Basin and other Mid-Continent sites. EPP specializes in environmental lining, above ground storage tanks, composite rig mats, secondary steel wall containment systems and rig vac systems. Founded in 2007, the company has locations in West Virginia, Pennsylvania, Texas, Oklahoma and New Mexico. For more information, visit www.exptremeplasticsplus.com.
About Blue Wolf Capital Partners Blue Wolf Capital Partners LLC is a private equity firm that specializes in control investments in middle market companies. Leading by experience, and with a commitment to excellence, Blue Wolf transforms companies strategically, operationally and collaboratively. Blue Wolf manages challenging situations and complex relationships between business, customers, employees, unions, and regulators to build value for stakeholders. For additional information, please visit www.bluewolfcapital.com.
About K2 Energy Capital, LLC
K2 Energy Capital, LLC, headquartered in Dallas, Texas, is a private investment firm that targets control transactions in the energy services sector, including oilfield services, utility services, and equipment manufacturing. K2’s founder, Kevin W. Kuykendall, has made successful investments in a broad array of energy subsectors including oil and gas production, coal production, drilling fluids services, fluids transportation and disposal services, downhole tool manufacturing, manufacturing of high pressure flow control equipment, ethanol production, underground utility locating services, drill bit manufacturing, and others. For additional information, please visit www.k2energycapital.com.