GulfStar Group Announces the Sale of Demay International, LLC Pursuant to a Section 363 Bankruptcy Auction Process
CONTACTS:
Bryan Frederickson
GulfStar Group, Inc.
Phone: 713-300-2030
Email: bfrederickson@gulfstargroup.com
Chris Williams, CTP
GulfStar Group, Inc.
Phone: 713-300-2061
Email: cwilliams@gulfstargroup.com
HOUSTON (February 25, 2010) GulfStar Group, Inc. ("GulfStar") is pleased to announce the sale of substantially all of the assets of Demay International, LLC ("Demay" or the "Company") to Drilling Controls, Inc. ("DCI"), a portfolio company of HitecVision Private Equity AS ("HitecVision"), pursuant to a sale under Section 363 of Chapter 11 of the U.S. Bankruptcy code. GulfStar served as exclusive financial advisor and engineered the turnaround process while serving as Chief Restructuring Officer. The transaction closed on February 19, 2010.
Headquartered in Conroe, Texas, Demay designs and manufactures multi-purpose oilfield pumps used for cementing, acidizing and fracturing oil and natural gas wells. The Company serves a global customer base that includes oil and gas drilling, well service and fabrication companies. Demay also offers replacement parts and repair / refurbishment services for its pumps.
GulfStar Managing Director Chris Williams served as court-approved Chief Restructuring Officer of the Company from shortly after its Chapter 11 filing in August 2009 through the closing date, enabling GulfStar to maximize Demay's value by marketing it as a going concern. Managing Director Bryan Frederickson was simultaneously retained to sell the business through a 363 auction. "We were pleased to represent Demay in the sale of its operating assets and especially to find a buyer that placed a premium value on its product quality and market potential. Demay's products are a sound strategic fit with the platform that DCI and HitecVision are building. Furthermore, the results of the sale permitted a substantial recovery to the secured and unsecured creditors of the Company," said Mr. Frederickson. Chris Williams added, "It was extremely gratifying to not only see the significant increase in enterprise value due to the restructuring process but also to know that all employees were able to retain their jobs and have a bright future in the ongoing operations."
The GulfStar transaction team consisted of Managing Director Bryan Frederickson, Vice President Brian Lobo, Associate Eric Danziger and Analyst Kyle Cresci. GulfStar's turnaround management services were provided by Managing Director Chris Williams, CTP in his role as Chief Restructuring Officer with support from Associate Justin Moers.
Founded in 1979, DCI produces drilling and production control systems. The company engineers, manufactures and sells primarily blow-out preventer control systems, diverter controls and deepwater multiplex controls for on- and offshore drilling rigs. DCI's capabilities include custom design and engineering, software design, fabrication and assembly, installation, after-market supply of OEM parts and repair and refurbishment. DCI is based in Houston, Texas with additional offices in Louisiana, Canada and Singapore
HitecVision is a leading private equity investor specializing in buyout and growth stage investments in the European and North American oil and gas sectors. Its investment team combines extensive operational experience from the petroleum industry with a proven investment track record. Over the past 20 years the team has established or invested in more than 65 companies, made 50 exits and led seven IPOs. HitecVision currently manages three funds with a total capital base of NOK 6.7 billion. Its investor base comprises leading Nordic, European and North American pension funds, fund of funds, endowments, foundations and family offices, insurance companies and other financial institutions. HitecVision is headquartered in Stavanger and has offices in Oslo, Aberdeen and Houston.
GulfStar Group is a leading middle-market investment and merchant bank headquartered in Houston, Texas. The firm specializes in providing merger and acquisition advisory services, institutional private placements of equity and debt, restructuring and turnaround advisory services and general corporate finance advisory services to companies with revenues or enterprise values generally ranging from $25 million to $350 million. Since its formation in 1990, GulfStar has completed more than 450 assignments across a variety of industries. GulfStar's merchant banking affiliate, GulfStar MB III, Ltd., makes equity and subordinated debt investments and serves as a transaction sponsor for acquisition-oriented growth strategies.
For additional information please visit www.gulfstargroup.com, www.drillingcontrols.com and www.hitecvision.com.
Securities offered through GulfStar Group I, an affiliated entity, member FINRA - SIPC
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