CLEVELAND, OH - JANUARY 4, 2010 -- Ninth Street Capital Partners (Ninth Street), a Cleveland-based private investment firm, is pleased to announce the acquisition of Castronics, Inc. (Castronics). Terms were not disclosed.
Based in Kimball, Nebraska, Castronics provides pipe threading, perforating, storage, and refurbishment services for steel mills, distributors, and oil and gas drilling companies throughout the United States and Canada. Castronics currently has approximately 35 employees.
“Castronics is the leading pipe threading company in the Rocky Mountain and Upper Midwest regions and is well positioned to benefit from the increased inland drilling activity and growing trend towards specialized flush threads,” said Michael Weiner, Ninth Street’s Managing Partner.
“Castronics is a trusted service provider to some of the largest steel mills and distributors in the United States and Canada, with an operating model that emphasizes quality, service and efficiency,” added Patrick Dickinson, Ninth Street’s other Managing Partner.
Perry Van Newkirk,CEO of Castronics since 1986, will continue to lead the company.
“Castronics has played a key role in servicing pipe for the oil and gas industry in the United States and Canada,” Van Newkirk said. “We see tremendous opportunity to accelerate Castronics’ growth while continuing to provide exceptional service to our customers. With Ninth Street’s backing, we hope to build on our leading position by expanding our customer base and our service offerings.”
Senior debt financing for the transaction was provided by Deerpath Capital of New York, New York. Subordinated debt was provided by Castronics’ shareholders. Investing alongside Ninth Street was Castronics’ management. Alliance Equity of Seattle, Washington advised Castronics’ shareholders on the sale.
Ninth Street Capital Partners is an investment firm that was founded in 2009 to make lead investments in smaller middle market transactions. Ninth Street focuses on niche-leading companies with revenues of $5 million to $50 million and EBITDA of $2 million to $10 million. More information on Ninth Street may be found on its website, www.ninthstreetcapital.com.
Before founding Ninth Street, Weiner, a native of Cleveland, Ohio, was an investment professional at The Riverside Company, a Cleveland based, middle-market private equity fund and Dickinson, a native of Pittsburgh, Pennsylvania, was an investment professional at Laurel Mountain Partners, a Pittsburgh-based private investment group.
Deerpath Capital makes privately negotiated debt and equity investments in lower middle market companies with annual revenue in the range of $10 million to $100 million. Deerpath applies a private equity approach to credit investments, with a specialty focus in key industry sectors (communications, energy/natural resources and health care) as well as general capabilities across a broad range of industries. Additional information is available on the firm's website at www.deerpathcapital.com.
Founded in 1993, Alliance Equity is a regional investment banking group with offices in Colorado, California and Washington. Alliance’s Colorado office specializes in oil and gas opportunities and represented the Sellers in this transaction. Additional information is available on the firm's website at www.AllianceEquity.com.