SSG Capital Advisors and Statesman Corporate Finance acted as the investment bankers to Watson Valve Services in the sale of substantially all of its assets to MOGAS Industries. The sale was effectuated through a Chapter 11 Section 363 process in the U.S. Bankruptcy Court for the Southern District of Texas. The transaction closed in July.
Headquartered in Houston, Watson Valve Services is a manufacturer of proprietary and non-proprietary ball valves. The company mainly works with the mining, chemical and petro-chemical industries, servicing customers with autoclave operations and those operating in settings characterized by fluid products under severe pressures or in highly corrosive environments. In addition, the company provides maintenance, repair and refurbishment services to its own and other manufacturers’ valves.
In January 2020, a catastrophic gas explosion at its exclusive supplier’s plant abruptly shuttered Watson Valves Services’ primary manufacturing channel and severely disrupted its capabilities to fulfill existing project contracts and open customer orders. Watson Valve Services filed a petition for voluntary Chapter 11 reorganization due to the disruption.
SSG and Statesman were retained to conduct a marketing process to solicit offers from strategic and financial buyers. The process attracted interest from several strategic parties. MOGAS Industries’ bid was deemed the highest and best offer following an auction. MOGAS Industries is a service technology company, providing services and application-specific products for applications in power, mining, oil and gas, refining, chemical/petrochemical, and specialty industries.
Other professionals who worked on the transaction include:
- Robert E. Ogle of The Claro Group, as Chapter 11 trustee for Watson Valve Services
- Matthew S. Okin and Edward A. Clarkson III of Okin Adams, as counsel for the trustee
- Jarrod B. Martin of Chamberlain, Hrdlicka, White, Williams & Aughtry, as bankruptcy counsel to Watson Valve Services
- MACCO Restructuring Group, as financial advisor to Watson Valve Services
- Michael J. Simmons of Vantage Associates-West, as financial and strategic advisor to MOGAS Industries
- Holland N. O’Neil, Susan E. Pravada, Erika L. Morabito, Thomas C. Scannell and Paige M. Moscow of Foley & Lardner, as counsel for MOGAS Industries
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SSG Capital Advisors is an independent boutique investment bank that assists middle-market companies and their stakeholders in completing special situation transactions.
Statesman is an investment banking and financial advisory firm founded in 1995 and headquartered in Houston.
