Hastings Equity Partners Completes Sale of Southern Petroleum Laboratories
Hastings Equity Partners (“Hastings”), a private equity firm focused on investing in lower middle market energy services and equipment companies, is excited to announce the sale of SPL to Industrial Growth Partners (“IGP”). IGP is a San Francisco-based specialist private investment partnership with $2.2 billion of equity capital raised since inception that focuses exclusively on investing in middle market companies in the industrial sector in partnership with management.
Based in Houston, Texas, SPL is the leading independent provider of outsourced hydrocarbon measurement, analysis, and reporting services for oil and gas production. With a 70-year history of consistent operational excellence, SPL is a trusted provider of laboratory, field, and production allocation services across its 14 strategic locations.
“We couldn’t be more appreciative of the experienced and talented senior management team at SPL. Thanks to the hard work and energy of the entire SPL team, the business prospered during an extremely challenging time in the energy sector” said Ted Patton, Managing Director of Hastings. “Management and employees consistently demonstrated why SPL is the best in class service provider. We feel IGP is the ideal partner to continue growing the SPL platform.”
“The Hastings team guided my third generation family business into a new era” said Christopher Brown, Shareholder of SPL. “With their support the business expanded over the last two years despite a market presenting unlimited challenges. I’m proud of what we accomplished and I look forward to seeing what the future holds for SPL and IGP.”
Hastings purchased a majority interest in SPL in the summer of 2014 along with certain funds advised by Jordan/Zalaznick Advisers, Inc. and The Edgewater Funds. The SPL sale represents the first exit from Hastings Fund III, which closed on $172 million in late 2014. The sale of SPL marks one of a handful of successful exits in 2016 by private equity funds in the energy services sector.
Harris Williams & Co. served as exclusive financial advisor to SPL for the transaction. Locke Lord, LLP served as legal counsel to the shareholders of SPL in the transaction.
About Hastings Equity
Hastings Equity Partners is a private equity firm focused on investing in lower, middle-market energy services and equipment businesses. Hastings' approach is to leverage the extensive operational experience of the firm's managers and investors, many of whom are active or former CEOs of Fortune 1000 companies. In addition, due to the firm's expanding portfolio of oilfield services companies, it is able to share best practices, technology trends and contacts across its platform to ensure that all of its investments benefit. Hastings strives to help its portfolio companies create sustained value for their employees, customers, and investment partners.