White Deer Energy, a recently-formed private equity firm focusing on exploration and production, has invested $50 million in Fiberspar, a designer and manufacturer of pipeline products. Fiberspar will use the funds to reduce its debt and expand manufacturing capacity, while White Deer has reserved an additional $25 million to invest in Fiberspar in the future. White Deer Energy has offices in Houston and New York.
Fiberspar Corporation (“Fiberspar” or the “Company”) today announced that White Deer Energy L.P. (“White Deer”) has made a $50 million investment in the Company. White Deer is a recently formed energy private equity firm. White Deer’s investment includes the purchase of existing shares and new shares issued by the Company. Fiberspar will use the proceeds to reduce debt and expand manufacturing capacity. As part of the transaction, White Deer has reserved an additional $25 million to invest in Fiberspar on mutually acceptable terms to fund future growth opportunities.
“We are pleased and excited to have White Deer as a partner and are eager to capitalize on the many growth opportunities this investment and relationship will enable,” said Peter Quigley, Fiberspar’s President and CEO. “By combining White Deer’s experience and relationships in the energy sector with Fiberspar’s industry-leading patented products, quality-certified manufacturing and expansion potential, Fiberspar is positioned for rapid growth in the markets we currently serve and for the extension of our products into new markets.”
Fiberspar designs and manufactures advanced spoolable composite pipeline products, marketed as LinePipe™. LinePipe is used by crude oil and natural gas producers in gathering systems, pipeline remediation, and disposal and injection applications. Fiberspar was the first to introduce spoolable composite pipe to the oilfield market. Its products are manufactured in Houston and deployed from 12 distribution facilities strategically located in the US and Canada.
LinePipe offers significantly lower installed and operating costs compared to traditional welded steel pipelines. These savings result from faster, less labor-intensive installation and the fact that LinePipe is durable and non-corroding. LinePipe’s patented design also delivers substantial performance advantages over competing products in the market. “Fiberspar is the market leader with more than 25 million feet (7.6 million meters) of LinePipe installed in the last five years,” Quigley said.
Commenting on the transaction, Ben Guill, Managing Partner of White Deer, said, “Over the past 10 years, Peter Quigley has successfully developed Fiberspar into a leader in spoolable composite pipeline products. Fiberspar has an excellent reputation based on its superior product performance and customer service. White Deer is excited to partner with Fiberspar’s management. We look forward to helping build on their success and to creating additional value for all stockholders.”
About White Deer
White Deer is an energy private equity fund focused on the exploration & production, oilfield service and equipment and midstream sectors of the oil and gas industry. With $821 million of capital commitments, the fund is a long-term investor targeting equity investments of $50 to $120 million in 8 to 10 portfolio companies. With offices in Houston and New York, White Deer has a combination of industry expertise and capital that makes it an attractive partner for rapidly growing North American energy companies.
Macquarie Capital acted as Fiberspar’s financial advisor for this transaction.