Frank’s International N.V. (NYSE: FI) is purchasing Blackhawk Group Holdings Inc., the parent company of oil-well tool provider Blackhawk Specialty Tools LLC, for nearly $321 million from Bain Capital Private Equity. The deal is expected to diversify Frank’s tubular running services division as oil prices remain volatile.
Houston, Texas-based Blackhawk makes and sells deep water and land cementing tools used for well construction and managing oil rig systems. From universal cement heads to low-torque kelly valves, Blackhawk rents and sells equipment to oil and gas companies. The target has clients across the U.S., Angola, Australia, Canada, Gulf of Mexico, Morocco, Russia.
Headquartered in Houston and the Netherlands, Frank’s provides international casing installation and tubular running services for the oil and natural gas industry. The buyer sells drilling tools used to troubleshoot problematic oil rig situations, on and offshore. Frank’s expects that Blackhawk’s complementary cementing tools will add greater value to the tubular running services division.
Bain Capital is a global private equity firm based in Boston and New York City with nine offices total across three continents. The firm acquired Blackhawk and the management team in 2013 and has made more than 400 investments across five core industries including: industrial and energy, healthcare, financial and business services, consumer and retail, and technology, media and telecom. Bain Capital has 18 current investments within the industrial and energy sector. The firm will receive nearly $150 million in cash and the remaining in stock as part of the deal, expected to close by year end 2016.
Dealmakers predict energy M&A activity will pick up over the next 12 months, according to Mergers & Acquisitions’ Mid-Market Pulse (MMP), a forward-looking sentiment indicator, published in partnership with CT. Recent deals in the oil and gas industry include: Carlyle Group LP’s (Nasdaq: CG) purchasing specialty chemical unit Atotech for $3.2 billion from French oil company Total SA; PDC Energy Inc.’s (Nasdaq: PFCE) agreement to pay $1.5 billion for two oil drilling companies; and Riverside-backed H-D Advanced Manufacturing Co.’s purchasing natural gas drilling service provider Numeric Machine Co.
Simmons & Co. International is providing financial advice to Blackhawk, while Ropes & Gray LLP is serving as legal counsel to Blackhawk and Bain Capital. Morgan Stanley & Co. LLC is serving as financial adviser to Frank’s, and Baker & McKenzie LLP is acting as legal counsel.