The shareholders of Keane & Sons Drilling Co. (Keane & Sons), a family-owned drilling and hydraulic fracturing company in central Pennsylvania providing a full range of services throughout the Marcellus Shale, have sold a majority stake in the company to Cerberus Capital Management, L.P. (Cerberus), a leading worldwide private investment firm. Financial terms of this transaction have not been disclosed.
In a market as highly regulated as energy and one largely dominated by multinational corporations, selling a regional business often requires an emphasis on strategic contracts in addition to company fundamentals. Having passed stringent environmental requirements, Keane & Sons developed and signed a long-term drilling and hydraulic fracturing contract with one of the top integrated oil companies in the world, which positioned the company as a strategic partner for potential acquisition opportunities.
Established in 1992, Cerberus, together with its affiliates, is one of the world's leading private investment firms. Through its team of investment and operations professionals, the company specializes in providing both financial resources and operational expertise to help transform undervalued and under performing companies into industry leaders for long-term success and value creation.
Oaklins' team in Dallas advised the seller. The terms of this transaction included an all-cash closing for the shareholders, who retained an equity share in the company. By securing the appropriate buyer for the business, the team matched a well capitalized firm with a company primed for rapid expansion.
© Oaklins. All rights reserved. Oaklins refers to Oaklins International Inc. and/or one of its member firms, each of which is a separate legal entity. Please see www.oaklins.com/legal for further details.