Blue Wolf Capital Partners LLC (Blue Wolf), the New York-based private equity firm, has 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 20 October, Blue Wolf was named the stalking horse bidder for the assets of EPP by the US Bankruptcy Court, District of Delaware and prevailed in an auction held on 17 November 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, aboveground 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 US energy markets, EPP filed for Chapter 11 bankruptcy protection on 31 January 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.”
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.”
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