Mill City Capital Invests in Command Fishing and Pipe Recovery
Minneapolis, MN -- December 22, 2014 -- Mill City Capital, L.P. (“Mill City”) announced that it completed an investment in a newly formed company, Command Fishing and Pipe Recovery Ltd. (“CFPR” or the “Company”) in a transaction that closed on October 15, 2014. CFPR was formed through the combination of Hess Fishing & Pipe Recovery, a division of Mill City’s existing portfolio company, Bonnett’s Energy Corp (“Bonnett’s”), and Command Fishing Services Inc. The transaction was led by Pat Powell, former Chairman of Bonnett’s and an experienced entrepreneur, who will serve as Chairman and CEO of the Company. Existing operating teams from both companies remain in place led by Jeff Schryver, who was named President of CFPR.
CFPR is a leading independent oilfield service business focused exclusively on Western Canada. The Company offers fishing, rental and pipe recovery services to a wide variety of oil and gas producers as well as a limited group of international customers.
The controlling shareholders of CFPR include Mill City Capital, Pat Powell and XALTA Capital Partners Ltd., a private equity fund based in Edmonton, AB. Other significant investors include Murray Toews, CEO of Bonnett’s, Bowside Capital and 747 Capital, both U.S. based private equity funds, and Bond Capital, a Vancouver, BC, based private equity and debt fund, among others. The CFPR management team also invested in the equity.
Senior debt financing for the transaction was provided by Royal Bank of Canada and Alberta Treasury Branches. Burnet, Duckworth & Palmer LLP represented Pat Powell, Borden Ladner Gervais LLP represented Mill City and Bonnett’s and Brownlee LLP represented the selling shareholders of Command Fishing Services Inc. Terms of the deal were not disclosed.