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Energy & Sustainability M&A Activity – November 2019

Recent M&A Activity:

  • October 1, 2019: City Pipe & Supply was acquired by Russel Metals for $160 million. The acquisition is a strategic and cultural fit that affords Russel Metals the opportunity to further expand its high-margin oilfield services business in the Permian Basin.
  • October 1, 2019: NorthStar Battery reached a definitive agreement to be acquired by EnerSys for $182.5 million.
  • October 3, 2019: Reliance Gathering reached a definitive agreement to be acquired by Oryx Midstream Services (a portfolio company of Stonepeak Infrastructure Partners) and Rattler Midstream Partners (a subsidiary of Diamondback Energy, Inc.) for $355 million.
  • October 8, 2019: Middlesex Water, through its subsidiary Tidewater Utilities, entered into a definitive agreement to acquire the subsidiaries of J.H. Wilkerson & Son, including Wilkerson Water Company and Broadkiln Beach Water Company. The acquisition will enable Tidewater Utilities to add nearly 1,000 customers and provide services through seven community water systems in Kent and Sussex Counties in Delaware as well as the Broadkiln Beach community bordering the Delaware Bay in Sussex County, Delaware.
  • October 8, 2019: Cube Hydro Partners was acquired by Ontario Power Generation for $1.12 billion. Eagle Creek and Cube Hydro Partners will be combined to form OPG’s US hydro platform.
  • October 9, 2019: Gas South reached a definitive agreement to acquire the Florida assets of the Peninsula Energy Services Company (PESCO) for an undisclosed amount. PESCO is the natural gas marketing subsidiary of the Chesapeake Utilities Corporation, which has announced that it will be exiting the natural gas marketing business and selling many of its assets.
  • October 9, 2019: United Energy Trading reached a definitive agreement to acquire the non-Florida retail operations and contracts of Peninsula Energy Services Company (PESCO), a natural gas marketing subsidiary of Chesapeake Utilities Corporation, for an undisclosed amount. The sale is one of several transactions made by Chesapeake Utilities Corporation as it moves to exit the natural gas marketing business and sell the majority of its PESCO assets.
  • October 9, 2019: Connecticut Water Service was acquired by SJW Group for $1.1 billion. The combined company SJW Group is the third-largest water utility among investor-owned entities in the United States.
  • October 14, 2019: Jagged Peak Energy reached a definitive agreement to be acquired by Parsley Energy for $1.62 billion. Jagged shareholders will receive a fixed exchange ratio of 0.447 shares of Parsley Class A common stock for each share of Jagged common stock they own; this represents $7.59 per Jagged share based on Parsley’s closing price on October 11, 2019. This transaction excludes Jagged Peak’s net debt of approximately $650 million as of June 30, 2019.
  • October 15, 2019: The Electrification Division of Quantum Fuel Systems was acquired by XL Hybrids for an undisclosed amount.
  • October 17, 2019: Basalt Infrastructure Partners reached a definitive agreement to acquire Third Coast Midstream LLC’s natural gas transmission business for an undisclosed amount. The acquisition enables Basalt Infrastructure Partners to capture continued industrial growth in demand-driven, regulated ‘last-mile’ natural gas pipelines serving utilities.
  • October 18, 2019: The Hartley was acquired by Campbell Oil Company for an undisclosed amount. The acquisition enables Campbell to strengthen its position in the southeastern Ohio market.
  • October 22, 2019: Rigworx reached a definitive agreement to be acquired by United Energy Corp. for an undisclosed amount.
  • October 25, 2019: Isramco was acquired by Naphtha Israel Petroleum Corp for approximately $96.5 million. The acquisition expands Naphtha’s footprint in the United States to include ISRL’s more than 400 oil and gas wells. As a result of the merger, Isramco became an indirect wholly owned subsidiary of Naphtha, and its common stock has ceased trading and will be delisted from the NASDAQ Capital Market.

*Source: PitchBook

 

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Authors

Thomas R. Burton, III

Member / Chair, Energy & Sustainability Practice

Tom Burton has helped to shape the clean energy industry by drawing on his passion for innovation. As a Mintz attorney, Tom counsels investors, entrepreneurs, and Fortune 100 companies. He also guides start-up organizations and accelerators to foster the next generation of energy leaders.

Sahir Surmeli

Member / Co-chair, Energy & Sustainability Practice

Sahir Surmeli is a Mintz business counselor who advises companies, boards, entrepreneurs, investment banks, and venture and private equity investors as they grow. He handles public offerings, 144A and private financings, acquisitions, joint ventures, and strategic partnerships.