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Portfolio
Petroplex Acidizing, LP
Petroplex is a 25 year oilfield services business that provides well stimulation treatments to leading oil producers in the Permian Basin region of West Texas and Eastern New Mexico. Petroplex custom fabricates its own specialized equipment so that it can efficiently and safely perform acid stimulation services. This extensively used service dramatically improves the productivity of an existing oil well, but is a somewhat small niche that is neglected by most major service companies. With the largest fleet of equipment specially designed to do these small acid treatments in the region, and facilities in Midland, TX and Lovington, NM, Petroplex is the leading provider of small volume stimulation treatments in the Permian Basin.
Venquest has extensive experience in oilfield services, and began looking for a company to acquire in this industry in 2005. Petroplex was majority owned by the original founder who was planning his eventual retirement, but had groomed his son-in-law into the President role and previously sold a portion of the ownership to him. Venquest led the acquisition whereby it acquired the majority of the stock, the President retained a meaningful minority position, and the former owner agreed to consult for a period of time. Venquest has worked extensively with management since the acquisition and currently serves as CFO of the company.
Premier Retail Interiors, Inc.
Premier consists of two companies, Marlin Showcase and Quantum Fine Casework, both acquired simultaneously in a transaction sourced and led by Venquest in 2007. Marlin and Quantum both manufacture highly-engineered, custom store fixtures for leading cosmetics companies, major department store chains, and luxury-oriented specialty retailers. Premier has a dominant nationwide market share in its core cosmetics fixtures business, and has strong penetration in its rapidly growing specialty retail segment.
Venquest led the simultaneous acquisition of both Marlin and Quantum through Premier in 2007. Venquest had developed a strong relationship with Marlin’s owner/managers in 2006 and subsequently became aware that Quantum was being sold by a private equity firm and the founder of the business. Venquest conducted due diligence on both companies, determined they were very complementary in all key areas, and executed contracts to acquire both companies while enticing management to reinvest a meaningful amount of their proceeds continued ownership in Premier. Following the acquisition of the companies, Venquest has worked extensively alongside its equity partner to ensure a smooth and efficient combination of the two companies.
The Premier Retail Interiors acquisition was awarded The Best Acquisition by a Private Equity Firm in the Dallas Business Journal’s M&A Awards in January 2009.
Alsay Incorporated
Alsay drills and services large diameter water wells for municipal water systems, privately operated municipal utility districts and a variety of large industrial clients. Alsay constructs highly engineered and specialized wells costing up to $2 million each, and also provides extensive maintenance services on a large base of installed wells. With a 40 year history, two facilities located in Houston and San Antonio, and the largest fleet of drilling and service rigs suitable for constructing these large wells in Texas, Alsay is the dominant municipal water well contractor in the region.
Venquest led the acquisition of Alsay in 2003 from two individual shareholders. While other prospective buyers passed on the opportunity, Venquest spent considerable time understanding the contracting nature of the business, the resultant bonding requirements, and the historical cyclicality of the business. Venquest sourced all the debt and equity capital as well as the bonding line, and the late President reinvested in the deal to retain a minority stake. Alsay has performed well and is significantly larger and more profitable than it was at the time of acquisition.
Precept Medical Products
Precept is a disposable medical products manufacturing company offering solutions to a variety of patient, staff and enviromental problems that plague the healthcare industry. Precept manufactures a complete line of protective apparel consisting of face masks, protective gowns, scrubs, headwear, shoecovers, warm-up jackets, labcoats, coveralls and surgical drapes and gowns.
The Principals of Venquest held lead and invested in the acquisition of Precept in 1999 through a partnership with various individuals including a former Banc One colleague, the former CFO of Precept, two current members of the company’s management team, and an outside investor. This ownership group’s familiarity with the company positioned it well to acquire the company from the strategic owner which had neglected the company over a period of time. Very shortly post-closing, Precept returned to profitability as projected.
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