Deloitte Corporate Finance is acting as financial advisor to Elkhorn Holdings in its sale to John Wood Group. The acquisition is subject to anti-trust approval in the U.S., with an expected closing in late 2013.
DCF advised Elkhorn on the exploration of various strategic alternatives, including the consideration of a strategic sale and financial sponsor investment participation through a majority recapitalization and an S-Corp ESOP co-investment opportunity.
Elkhorn expects the acquisition to expand Wood Group’s integrated service portfolio for shale customers and increase its presence in key shale plays to approximately 4,500 personnel. Post-close, Elkhorn will operate within Wood Group PSN and will continue to be led by its existing management team under CEO Sean Sullivan.
“DCF’s knowledge and experience enabled us to identify and secure the best partner for Elkhorn to accelerate its significant opportunities in the energy services sector. DCF guided us through a well thought-out process in order to seamlessly achieve our objectives. DCF’s leadership, experience and extensive knowledge of the oil and gas industry, as well as their depth in ESOP corporate finance, were vital to accomplishing the transaction,” said Sean Sullivan, chairman and CEO of Elkhorn.
“Sullivan and his management team have built Elkhorn into an industry-leading company focused on safety, customer relationships and adherence to its core values. Elkhorn represents a key brand in the oil and gas industry, which is experiencing growth across many production and service channels. We see the transaction with Wood Group as providing Elkhorn a solid platform from which to continue to build and strengthen its leadership in the midstream and broader energy services category,” said Eric Andreozzi, managing director and head of Energy Services for DCF.
Elkhorn is an employee-owned turnkey provider of infrastructure construction and maintenance services to U.S. energy sectors, including natural gas, oil, petrochemical, mining and power.
Wood Group is an international energy services company with approximately $7.0 billion in annual sales.