TriWest Announces Investment in Prostar Energy Holdings Limited Partnership
October 9, 2015 – TriWest Capital Partners, in partnership with each senior management team, is pleased to announce that it has acquired a majority interest in Prostar Well Service Inc. (“Prostar”) and their manufacturer, Rangeland Drilling Automation (“Rangeland”), together forming a newly created combined entity operating as Prostar Energy Holdings Limited Partnership (“Prostar Energy” or the “Company”). This investment represents TriWest’s twelfth portfolio company in Fund IV and the second portfolio company in Fund V.
Founded in 2012 and headquartered in Leduc, Alberta, Prostar is an innovative well service company providing experienced, knowledgeable crews and purpose built automated service rig packages for E&P customers in the Alberta thermal heavy oil market. Prostar utilizes proprietary service rigs designed and manufactured by Rangeland which significantly increase work place safety and efficiency.
Founded in 2008 and headquartered in Okotoks, Alberta, Rangeland is an industry leading designer, manufacturer, and provider of highly innovative, automated well servicing equipment and solutions. Rangeland’s flagship product is the SRR-150 service rig (the service rig used by Prostar). Equipped with an automated catwalk, top drive, power tong, mud tank, well site trailer, accumulator and skid-mounted workshop, the SRR-150 is a completely integrated and engineered system, enhancing jobsite safety, maximizing productivity and providing operators with a level of control and versatility that conventional service rigs aren’t capable of offering. Rangeland’s products are protected by a suite of issued and pending patents.
With this combination, Prostar Energy will continue to manage a fleet of service rigs which operate under contracts from investment grade producers while also controlling all aspects of manufacturing and development.
Terry Bendera, CEO of Prostar said, “Prostar is proud to be a part of the emergence of Prostar Energy. Prostar Energy is the collaboration of putting three industry heavyweights together TriWest, Rangeland and Prostar. Look for this partnership to expand the culture where well servicing can reduce costs, increase production, all while being safer and more environmentally conscious.”
Doug Hunter, CEO of Rangeland said, “We at Rangeland are extremely proud and excited to be joining with Prostar and our new partners at TriWest. Rangeland has enjoyed a very productive business relationship with Prostar over the past several years, helping to push operational boundaries in the areas of safety and environmental consciousness, while driving new, more efficient technologies into the well service industry. This partnership will allow our companies to work seamlessly together in a more efficient and focused manner, allowing us to provide our valued clients with the exceptional operational expertise and ongoing innovation they require to achieve their operational goals and to expand their position in this challenging economic environment.”
“We are thrilled to be a part of this exciting business combination. The ability to assist Terry and Doug in creating a vertically integrated well service business which utilizes state-of-the-art service rig technology is a very compelling investment opportunity for us at TriWest.” said Jeff Belford, Senior Managing Director at TriWest Capital Partners. “We look forward to our new partnership with the Prostar Energy team!”
Founded in 1998 and based in Calgary, Alberta, TriWest is one of Canada’s leading private equity firms, having raised over $1.25 billion in committed capital through five funds. TriWest makes significant equity investments in profitable companies and works in partnership with management to generate superior financial returns through the pursuit of growth opportunities and a focus on operational excellence. TriWest provides more than just capital. The principals of TriWest have significant operational and financial expertise, making us effective partners in creating shareholder value.