CHARLOTTE, N.C., Nov. 11, 2013 /PRNewswire/ -- Deloitte Corporate Finance LLC ("DCF") is acting as financial advisor to Wyoming-based Elkhorn Holdings, Inc. ("Elkhorn"), a leading employee-owned, turnkey provider of infrastructure construction and maintenance services to high-growth U.S. energy sectors, in its sale to John Wood Group PLC (WG.L) ("Wood Group"), an international energy services company. The acquisition is subject to anti-trust approval in the U.S., with an expected closing to occur in late 2013.
DCF advised Elkhorn on the exploration of various strategic alternatives, including the consideration of a strategic sale and financial sponsor investment participation through a majority recapitalization and an S-Corp ESOP co-investment opportunity. Elkhorn expects the acquisition to expand Wood Group's integrated service portfolio for shale customers and increase its presence in key shale plays to approximately 4,500 personnel. Post-close, Elkhorn will operate within Wood Group PSN and will continue to be led by its existing management team under CEO Sean Sullivan.
"DCF's knowledge and experience enabled us to identify and secure the best partner for Elkhorn to accelerate its significant opportunities in the energy services sector. DCF guided us through a well thought-out process in order to seamlessly achieve our objectives. DCF's leadership, experience, and extensive knowledge of the oil and gas industry, as well as their depth in ESOP corporate finance, were vital to accomplishing the transaction," said Sean Sullivan, chairman and CEO of Elkhorn.
"Sean Sullivan and his management team have built Elkhorn into an industry-leading company focused on safety, customer relationships and adherence to its core values. Elkhorn represents a key brand in the oil and gas industry, which is experiencing growth across many production and service channels. We see the transaction with Wood Group as providing Elkhorn a solid platform from which to continue to build and strengthen its leadership in the midstream and broader energy services category," said Eric Andreozzi, managing director and head of Energy Services for DCF.
Lou Paone, managing director, DCF added, "Elkhorn is a great example of an ESOP company that thoughtfully reviewed its strategic options with careful consideration and focus on its stakeholders."
Elkhorn is an employee-owned leading turnkey provider of infrastructure construction and maintenance services to high growth U.S. energy sectors, including natural gas, oil, petrochemical, mining, and power. Elkhorn's comprehensive capabilities range from fast-track construction to turnkey maintenance, as well as managing multiple phases of projects, such as additions, relocations, retrofits, turnarounds, and custom fabrication. Elkhorn's track record and capabilities have resulted in long-standing relationships, highly recurring revenues, and strong margins generated from a premier list of customers, including 8 of the top 10 U.S. natural gas producers and other key independents. For more information, visit www.elkhornconstruction.com.
About Wood Group
Wood Group is an international energy services company with approximately $7.0 billion in annual sales, employing an estimated 43,000 people worldwide, and operating in 50 countries. Wood Group has three businesses – Wood Group Engineering, Wood Group PSN, and Wood Group GTS – providing a range of engineering, production support, maintenance management, and industrial gas turbine overhaul and repair services to the oil and gas and power generation industries worldwide. For more information, visit www.woodgroup.com.
About Deloitte Corporate Finance
Deloitte Corporate Finance LLC, a FINRA-registered broker-dealer and wholly-owned subsidiary of Deloitte Financial Advisory Services LLP, provides deal execution and lead financial advisory services to large corporate, middle market, and private equity firms. Deloitte Corporate Finance has access to the resources of the Corporate Finance Advisory practices of the member firms within the Deloitte Touche Tohmatsu Limited network of member firms, and their affiliates. Together with Deloitte Corporate Finance, these practices include in excess of 1,600 professionals, working collaboratively across 150 international locations. For more information, visit www.investmentbanking.deloitte.com.
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