New York private-equity firm Castle Harlan Inc. agreed on April 17 to acquire Exterran Corp.’s (NYSE: EXTN) North American production equipment assets, forming a new company named Titan Production Equipment Acquisition LLC.
The terms of the transaction weren't disclosed.
The acquisition includes Exterran’s entire portfolio of production equipment used to separate, process and treat hydrocarbon streams at the wellhead, gathering and processing stages of production. The business specializes in custom and made-to-order products, including two- and three-phase separators, as well as glycol regeneration dehydrators.
The deal also includes Exterran’s 80-acre manufacturing facility in Columbus, Texas, which has the capacity to manufacture over 4,000 units per year. In addition, Titan will become Exterran’s preferred supplier of production equipment throughout the U.S. and Canada.
Chris Werner, who was a former officer of Exterran and formerly senior vice president of global operations and head of Exterran Italy, will become CEO of Titan.
Eric Schwartz, managing director of Castle Harlan, said in a statement, “The production equipment market currently faces constrained capacity, in which customers experience long lead-times, limited engineering support and product quality issues. We are excited to partner with Chris Werner and the rest of the Titan management team to address these challenges as a market leader in the industry with a completely dedicated focus on the design, engineering and manufacturing of high-quality production equipment.”
Exterran said April 17 that the sale reflects its strategy to become a systems and process company for oil, gas, water and power, though the Houston-based company will continue to manufacture production equipment outside of North America.
Exterran expects to close the sale in the summer of 2018 and said it will not have a material financial impact to the company.
Castle Harlan, which invests in middle-market companies in North America, Australia and Europe, has completed more than 50 acquisitions since its inception in 1987 with a total value in excess of $11 billion, according to the firm’s press release.
Recommended Reading
Verdagy Awarded $39.6MM DOE Grant for Electrolyzer Production
2024-03-14 - Verdagy will use the Department of Energy grant to accelerate the manufacture of e-dynamic electrolyzers for green hydrogen solutions.
US Gives Final Green Light to Sunrise Wind Offshore Project
2024-03-26 - The approval by the Bureau of Ocean Energy Management solidified Ørsted and Eversource’s commitment to the project with both taking final investment decisions.
US Clears 2.6-GW Offshore New England Wind Project
2024-04-04 - Located south of Martha’s Vineyard off of Massachusetts, the project consists of the 791-megawatt New England Wind 1 and the 1.87-GW New England Wind 2.
Electrifying Permian Could Threaten West Texas Power Grid—Enverus
2024-04-30 - Emissions reduction targets and cryptocurrency mining could double power demand and threaten the grid in West Texas by 2040, according to a report by Enverus Intelligence Research.
Bunge, Chevron Announce FID on Oilseed Processing Plant
2024-03-05 - Bunge Chevron Ag Renewables' facility will be used to manufacture low carbon renewable fuels from oilseed.