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Wellspring acquires Omni oil and gas services for $122m

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Entangled Proton   Monday, 02/07/11 05:10:04 PM
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Wellspring acquires Omni oil and gas services for $122m

New York mid-market private equity firm Wellspring Capital Management has acquired Omni Energy Services, a provider of environmental and seismic services for the domestic oil and gas industry.

The firm is to pay $2.75 per share in cash, representing a 29.7 per cent premium on the Omni closing price as of 3 June, with a total deal value of $122m. Under the terms of the merger agreement, Omni will have until 16 July to seek out other bidders, paying a “break up” fee of $1.8m plus up to $750,000 expenses in the event of a better offer.

The oil and gas market has been rocked by price volatility during the downturn, with the ongoing Gulf of Mexico oil crisis throwing the markets into turmoil again. The crisis will no doubt weigh heavily on Omni, whose client base is primarily based in the region.

"We believe this transaction will deliver an immediate and significant premium for our shareholders especially in light of the uncertain markets after the unprecedented drop in our end markets in 2009 and the continued current uncertainty in the Gulf of Mexico,” said Brian J Recatto, president and CEO of Omni.

Headquartered in Carencro, Louisiana, Omni provides a range of integrated services to geophysical companies engaged in the acquisition of on-shore seismic data and to oil and gas companies operating in the Gulf of Mexico. The company offers seismic services – including drilling, survey and permitting leases - environmental services and equipment leasing.

“Our strategic partnership with Wellspring is the culmination of a comprehensive process to address our balance sheet issues and will allow us to substantially improve our capital structure,” added Recatto.

Wellspring recently sold Dave & Buster’s, a North American operator of family entertainment and food venues, to Oak Hill capital Partners for $570m.

http://www.altassets.com/private-equity-news/article/nz18722.html

I try to read everything from documentation, so not everything I post is of my opinion.

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