Adler Hot Oil Services
“CapX Partners is truly a distinctive growth capital provider. They invested significant time and effort to understand the uniqueness of our company and growth strategy even though our industry, oilfield services, is currently out of favor. It is this thoughtful, forward looking mindset that sets CapX Partners apart and makes them great partners for us.”
Nicholas Behl, Managing Principal, Industrial Innovation Partners
Adler Hot Oil Services LLC (“Adler”) is a niche oilfield services company providing hot oil and super heating services to oilfield well sites. For over 25 years, Adler has been a trusted service provider, serving energy drilling companies throughout the Rocky Mountain region and parts of the Northwest with its fleet of specialty trucks.
In late 2013, Adler was recapitalized by Industrial Innovation Partners (“IIP”), a Chicago-based independent sponsor that focuses exclusively on oil field services companies. IIP’s long-term objective was to position Adler for accelerated growth and expansion.
Over its initial 18-month ownership period, IIP upgraded Adler’s management team by installing a new CFO and Controller as well assisted with the expansion of Adler’s service fleet of equipment. The improvements at both the management and operations levels enabled Adler to meet increased demand from both new and existing customers. Adler was well positioned for future growth, but then the rapid decline in oil prices slowed down U.S. oil production.
Adler was successful in retaining all of its customer relationships throughout the downturn. With its services still in demand, Adler needed to finance the purchase of additional equipment necessary to support these customer relationships. Adler and IIP were informed of CapX’s financing niche and made contact.
THE CAPX APPROACH AND SOLUTION
CapX quickly evaluated the opportunity and determined that Adler had a sound management team, strong customer satisfaction record, and proven financial discipline. CapX then assessed Adler’s equipment requirements and delivered on an equipment lease line of credit that allows them to efficiently access capital as needed.
“We approached Adler Hot Oil Services with our undivided attention as the initial challenge was understanding how the industry and market conditions were affecting the company. CapX ultimately found comfort with Adler’s business model, its experienced management team, and financial discipline. We also appreciated the supportive relationship Adler received from its equity sponsor, Industrial Innovation Partners.”