The Selling Company: Foster Testing, Inc. is an energy services firm that provides chemical applications to oil and gas wells, as well as removal and disposal of hazardous materials.
Why the company was sold: The majority shareholder was nearing retirement age and planning to begin the process of selling his company. He wanted his son to continue to manage the business, but the son was not able to afford the premium purchase price. The buyer saw an opportunity to add complementary geographic presence adjacent to that of one of its portfolio companies.
Capital Alliance’s Performance: At the seller’s request, CA introduced only a few potential buyers in the process, both strategic and financial. CA worked quietly and confidentially, and was able to get the parties in contact for calls and meetings. CA’s help in negotiating the price and terms of the deal and moving it forward toward closing were critical to getting the transaction consummated.
Terms of the Transaction: Cash and stock.
The Acquiring Company: Hastings Equity Partners, a private equity firm headquartered in Boston.