Investment Would Allow Company to Exit Bankruptcy in Q4 2016
New York, NY, November 1, 2016 — Blue Wolf Capital Partners LLC (“Blue Wolf”), the New York-based private equity firm, today announced that Blue Wolf Capital Fund III, L.P., an affiliate of Blue Wolf, has been named by the United States Bankruptcy Court, District of Delaware as the stalking horse bidder for the assets of Extreme Plastics Plus (“EPP” or the “Company”), an environmental containment company that primarily serves the domestic oil and gas industry. Blue Wolf will participate as the stalking horse bidder in an auction for the assets of EPP to be held on November 17, 2016.
EPP was founded in 2007, is headquartered in Fairmont, West Virginia and has additional locations in Pennsylvania, Texas, Oklahoma and New Mexico. The Company provides a variety of environmental containment services, including environmental liner installation, above ground storage tank rentals and composite mat rentals, to oil and gas companies operating in the Marcellus, Utica, Eagle Ford, Permian and Mid-Continent basins. Under the terms of Blue Wolf’s stalking horse bid, current EPP management, including Founder and CEO Bennie Wharry, will remain with the Company after the closing of the sale.
Impacted by the cyclical decline in the U.S. energy markets, EPP filed for Chapter 11 bankruptcy protection on January 31, 2016. Blue Wolf’s bid will allow EPP to exit bankruptcy by the end of 2016 with a clean balance sheet and will position the Company for an eventual oil and gas market recovery. This investment would mark the first investment from a partnership Blue Wolf entered into earlier this year with K2 Energy Capital, LLC (“K2”) and its founder, Kevin W. Kuykendall, to pursue energy services investments.
Adam Blumenthal, Managing Partner of Blue Wolf, said, “Environmental protection has been and will continue to be critical to the U.S. oil and gas industry. EPP has an impressive track record of providing unique and effective environmental containment solutions to its customers, and these solutions will be in high demand as the market recovers. We are excited to partner with K2 on this investment and to work alongside EPP’s experienced and capable management team to improve and grow the business.”
Bennie Wharry added, “A partnership with Blue Wolf and K2, combined with a clean balance sheet upon emergence from Chapter 11, will position EPP for future growth and profitability. Blue Wolf and K2 have the operational capabilities and industry experience needed to be extremely valuable partners to our Company. They have shown a strong commitment to dedicating the full range of resources needed to set EPP up for long-term success.”
Kevin Kuykendall added, “We’re extremely pleased to be able to partner with the management team and employees of EPP. The Company’s Founder and CEO, Mr. Bennie Wharry, is one of the most recognized and respected names in the environmental lining industry, having enjoyed a 30-plus year career with several different environmental lining firms. EPP has also built a strong operational management team including Wade Holt, Vice President of Southern Operations. With Blue Wolf’s support and continued leadership from Bennie and Wade, we’re confident that EPP will continue to be the dominant force in providing environmental containment solutions to the oil and gas industry.”
About Extreme Plastics Plus
Extreme Plastics Plus provides oilfield environmental containment services in the Marcellus Shale, Utica Shale, Eagle Ford, Permian Basin and other Mid-Continent sites. EPP specializes in environmental lining, above ground storage tanks, composite rig mats, secondary steel wall containment systems and rig vac systems. Founded in 2007, the company has locations in West Virginia, Pennsylvania, Texas, Oklahoma and New Mexico. For more information, visit www.extremeplasticsplus.com.
About Blue Wolf Capital Partners
Blue Wolf Capital Partners LLC is a private equity firm that specializes in control investments in middle market companies. Leading by experience, and with a commitment to excellence, Blue Wolf transforms companies strategically, operationally and collaboratively. Blue Wolf manages challenging situations and complex relationships between business, customers, employees, unions, and regulators to build value for stakeholders. For additional information, please visit www.bluewolfcapital.com.
About K2 Energy Capital, LLC
K2 Energy Capital, LLC, headquartered in Dallas, Texas, is a private investment firm that targets control transactions in the energy services sector, including oilfield services, utility services, and equipment manufacturing. K2’s founder, Kevin W. Kuykendall, has made successful investments in a broad array of energy subsectors including oil and gas production, coal production, drilling fluids services, fluids transportation and disposal services, downhole tool manufacturing, manufacturing of high pressure flow control equipment, ethanol production, underground utility locating services, drill bit manufacturing, and others. For additional information, please visit www.k2energycapital.com.