Argosy Invests in Eagle Automation Limited
On March 13, 2015, Argosy invested in Panhandle Oilfield Services Company to support the acquisition of Eagle Automation Limited. Panhandle is an existing portfolio company of AIP IV.
Eagle is an automation installation and services company primarily serving the oil and gas (O&G) industry in Texas. Eagle’s customers include blue-chip O&G companies operating in both the Barnett and Eagle Ford basins in Texas. Eagle offers two main service lines – Automation and Measurement. Automation services consist of installation and configuration of Supervisory Control and Data Acquisition (SCADA) and wireless communication systems for remote monitoring. Measurement services consist of electronic flow meter packages at the well site, collection facility, and fabrication factories. Eagle operates from four locations in Texas: Corpus Christi (headquarters), Jewett, McAllen, and San Angelo. Panhandle currently operates in the Northeast, Mid-Continent, and Rocky Mountain regions with nine offices providing construction and roustabout services, logistics services, and inspection services.
Eagle represented an excellent strategic acquisition opportunity for Panhandle. The Company will have a combined footprint in most of the major O&G plays in the continental U.S. The addition of Automation and Measurement services to the existing Panhandle service lines will strengthen the Company’s position as a “one-stop shop” for oilfield services. The acquisition also opens the door for the cross-selling of services to existing customers of both companies.
Argosy believes this transaction was a unique opportunity to acquire a strategic fit with significant upside potential at a very attractive purchase price. Steven Morgenthal, an Argosy Operating Partner, led the deal team and will be active in the integration of Eagle and Panhandle as well as the future operations of the Company.