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Sterling Partners Completes Majority Investment in Desert NDT

03 Apr 2012 15:44 Viewed1805

Sterling Partners Completes Majority Investment in Desert NDT

Desert Industrial X-Ray, L.P., one of the nation’s leading independent, privately held non-destructive testing (NDT) companies, has received a majority investment from Sterling Partners, a Chicago-based private equity firm with approximately $5 billion in assets under management. Going forward, Desert Industrial will operate as Desert NDT, which will include all of the company’s operations, facilities, equipment, management and field personnel. Financial terms of the transaction were not disclosed.

Desert, based in Odessa, Texas, and serving customers primarily in the Southwest, has provided integrity management services to the oil-and-gas industry for more than 20 years. Desert’s non-destructive testing solutions span the entire life cycle of oil and gas assets, from initial installation through ongoing integrity program management.

“We greatly appreciate the hard work and quality services provided by our employees, the support of our vendors and the confidence of our customers,” said Doug Frey, CEO of Desert NDT. “With Sterling’s assistance, we look forward to expanding these excellent relationships as we move forward.”

“Our investment in Desert NDT is consistent with our strategy of backing leading companies in growing industries,” commented Sterling Managing Director Alan Macksey. “Surging U.S. oil and natural-gas production has increased demand for reliable non-destructive testing of pipelines and midstream infrastructure. We look forward to working with the Desert management team to grow the company both organically and through acquisitions, and we have allocated substantial additional capital to support this growth.”

“Desert NDT has a well-defined purpose of Safety, Quality and Service that has guided the Company’s growth for over 20 years. We are excited to partner with Desert NDT as we look to leverage the platform into new regions and to broaden the service offering,” said Sterling Vice President Mike Drai.

Sterling Partners has a history of successful investments in the energy and industrial sector. Sterling first entered this sector in 2003, with its investment in Liberty Propane. Liberty completed 29 acquisitions over the course of Sterling’s ownership, with Sterling contributing substantial capital until selling to a public company in 2009. Other investments included the 2004 acquisition of Atlantic Scaffolding that was sold to The Brock Group, and more recently, the 2010 purchase of GEM Mobile Treatment Systems, a provider of de-gassing and vapor control services for oil refineries and terminals.

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