Case Study

PermianLide

CLIENT:

Seaport Gordian acted as investment banker to the Company, coordinating and leading the Company through its sale process.

Professionals

Business Profiles

Situation

PermianLide faced increasing downward pressure as a result of the downturn in the oil & gas market and the Company filed for bankruptcy in Delaware on July 19, 2020. Judge Mary F. Walrath presided over the case. The Company turned to Seaport Gordian Energy (“SGE”) to market its assets in order to achieve the most desirable outcome for all parties.

SGE was an integral part in assisting the Company as their financial advisor, primarily consisting of coordinating and process management regarding the sell-side marketing process. In total, SGE approached approximately 4,000 potential bidders across a myriad of industries, including those associated with energy and manufacturing companies, private equity, banks, attorneys, and other professionals. Out of the initial outreach, 21 parties executed the NDA and performed additional diligence on the target.

Engagement

PermianLide is an Odessa, Texas based, manufacturer of above-ground storage tanks and processing equipment for the oil & gas industry. PermianLide has more than 40 years of experience consisting of two well-known industry brands; Permian Tank & Manufacturing and Lide Industries. PermianLide has facilities in Odessa and Troy, Texas as well as South Dakota and provides services to numerous operators across the majority of U.S. basins. Seaport Gordian was hired as investment banker to the Company, coordinating and leading the Company through its sale process.

Outcome

New Mountain Capital, as a secured creditor to PermianLide, credit bid the assets which resulted in the highest value after the sales process was completed. SGE is pleased to announce the completion of the sale of PermianLide to New Mountain Capital for $30 million as part of the Company’s Chapter 11 bankruptcy Company sale process.