Little Red Services Acquisition

Situation

Little Red Services ("LRS") provides specialized pressure pumping services to BP Exploration Alaska and ConocoPhillips Alaska, the principal oilfield operators on the North Slope of Alaska. LRS employs a fleet of arctic-duty mobile pumping units to flush heated fluids (diesel, methanol, or crude oil) under pressure through oil well tubulars and surface equipment to clear accumulations of ice, paraffin, and asphaltene that build up in the normal course of production. This service is required with increasing regularity to maintain production volumes as the North Slope oilfields mature. The founder and builder of this privately-held business reached a decision to transition the ownership of LRS to a team of three highly-experienced industry executives that is well suited to lead the business without his continued day-to-day involvement.

ZS Role

Zachary Scott partnered with the new executive team and Endeavour Capital to negotiate terms of the transaction, organize and conduct due diligence on the business, and arrange the debt capital necessary to complete the acquisition.

Results

The purchase of LRS was completed in a timely manner under terms and conditions that provided the management team with a generous interest in the potential future equity value of the business, while offering cash investors a very attractive investment opportunity.

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