New York private equity firm Bregal Partners LP has acquired assets from Ceiba Energy Services Inc. and Phyllis Disposal Ltd.
The PE firm bought the two companies’ saltwater disposal assets to add to portfolio company Aqua Terra Water Management, which provides water management and disposal services to onshore oilfield customers in North America. The acquisitions allow Aqua Terra to enter into the Canadian Bakken and heavy oil corridor around Lloydminster, Saskatchewan. Terms of the deals were not disclosed, but Bregal principal Paul McGill (pictured) says the firm has “dedicated at least $75 million” of equity to the platform.
“We’d expect to add assets in both of those regions in the next three to six months. There are number of parties that we’re in negotiations with,” says McGill. The PE firm is also looking for acquisitions in the Viking Formation and Cardium Formation, he says.
Bregal made the acquisitions through Aqua Terra subsidiary Four Winds Energy Services Ltd. Four Winds, which was purchased in November, was Bregal’s first add-on for Aqua Terra.
Canaccord Genuity served as Aqua Terra’s financial adviser, while Stikeman Elliott LLP provided legal advice.
Over the past few years, largely because of an increase in hydraulic fracking, companies have been investing in equipment manufacturers, compliance companies, geospatial software groups and other businesses that provide services to traditional energy. Recent oil and gas services deals include Texoma Transportation & Crude Marketing LLC's acquisition of CP Energy and American Midstream Partners LP's (NYSE: AMID) deal for a natural gas gathering pipeline for $100 million.
For more on Bregal, see "3Qs With ... Scott Perekslis, Co-Founder, Bregal Partners."