The Selling Company: Red Dirt Rentals, Inc. originally began as an equipment rental company to E&P companies in Texas and Pennsylvania. The company evolved into torque and testing, as well as isolation tool rental and services.
Why the company was sold: The selling company saw tremendous growth potential in its service offering and needed additional equity for capital expenditures in order to service additional customers. The buyers were looking to diversify their customer base, as well as their service offering.
Capital Alliance’s Performance: Our deep industry knowledge and contacts helped us introduce over 25 potential buyers to the company principals. We assisted in price negotiations, due diligence, and closing documents.
Terms of the Transaction: The buyers paid cash and stock in the combined entity, and assumed seller bank and non-bank debt.
The Acquiring Company: Rix Energy, LLC was founded in 2009 by Kim Snell and Ricky Escobedo. Born out of the desire to build a great company from the ground up after having worked together for many years, the partners assembled a group of trusted crews and team members to deliver workover services in Kansas and Oklahoma. Starting with only two rigs, the company quickly grew, expanding the operation to West Texas and South Texas, where Rix has had a presence since 2010.