The Selling Company: Condor Engineering and Manufacturing, LLC is a private oil field equipment design and manufacturing company making patented hydraulic fracturing blender pumps. The company’s superior closed-tub design allows for very large efficiency gains in frac blending operations (the mixture of water, sand, and chemicals prior to injection), while offering significant environmental advantages. The products operate in the U.S., Canada, and China, with expansion into shale plays globally.
Why the company was sold: The company founder and majority shareholder, along with his financial partners, were seeking an exit of their ownership interests for diversification. They were also seeking a transaction that allowed for their technology to continue to win market share and move towards becoming a market-leading industry standard.
Capital Alliance’s Performance: Working with the client, a highly selective acquirer pool was identified as being uniquely advantaged strategically to value and promote Condor’s technology to a global fracking industry demanding constant economic and environmental improvement. NOV was steadily pursued and Capital Alliance kept the deal progressing, even as the ultimate acquirer underwent a large reorganization and corporate spin-off that caused direct senior leadership movement relative to the deal.
Terms of the Transaction: The shareholders received an all-cash payout at closing representing an attractive multiple of sales. In addition, the company founder is staying on with the buyer while enjoying a lucrative compensation package for several years. The deal required no financing contingency and favorable working capital terms for the sellers.
The Acquiring Company: National Oilwell Varco is a global giant in the oil field equipment and component manufacturing and distribution space. At the time the deal closed, the company boasted a market cap of $36 billion, revenues of $23 billion, assets of $36 billion, and 55,000 employees globally.