N.Y.-based private equity firm acquires Allison Marine
Allison Marine Contractors Inc. in Morgan City has been acquired by New York-based Lincolnshire Management — a middle-market private equity investment firm — in a multi-million dollar deal.
While local operations will remain the same, Allison Marine Chief Executive Officer Steve Orlando said about 100 local jobs will be created over the next year due to an increase in capacity and funding.
Allison is a marine outfitting, repair and refurbishment company that provides integrated land-based and offshore services to oil and gas operators in the Gulf of Mexico primarily related to platform logistics. The company’s operations are focused on refurbishment, resale and recycling of platforms and equipment, fixed-priced platform decommissioning project management and various other offshore support services.
Allison Marine’s business model is designed to generate revenue from all stages of the platform lifecycle, which is unique among oil and gas service providers. The company’s services include the removal of used platforms on a fixed-price basis and providing all of the logistical services required to dispose of them; selling fully customized, refurbished platforms and installing those refurbished platforms offshore; and maintaining, modifying and repairing offshore platforms throughout their useful life.
“We are very excited to be given the opportunity to partner with such a proven winner as Allison Marine and their excellent management team,” Lincolnshire Managing Director Allan Weinstein said. “Allison’s range of services and stellar track record in the servicing of offshore projects in the Gulf of Mexico for the oil and gas industry are unrivaled and with Lincolnshire’s assistance we expect their solid performance to continue.”
Orlando is happy with the deal. “We are very pleased to be working with such fine professionals as we’ve found at Lincolnshire Management. They will provide for Allison both the resources and the room to grow to new levels of production and capability.”
Regarding business demand in the Gulf, Orlando added, “We are seeing a very strong and continuing demand for our services in the Gulf due to the market dynamics of decommissioning of rigs due to their age and the ever-rising level of Allison’s reputation for dependable, high-quality results.”
Lincolnshire Director Michael Lyons said that what sets Allison Marine apart from other companies is their focus on generating revenue from every stage of the offshore platform’s lifecycle.
“This 360-degree coverage keeps Allison’s services deployed over the normal ups and downs normally associated with oil and gas exploration. This full service approach, coupled with Allison’s superior management team, made this a very compelling investment opportunity for Lincolnshire,” Lyons said.
Lincolnshire Management is a private equity firm focused on generating superior returns for investors by acquiring and growing middle market companies across a wide range of industries. Founded in 1986, Lincolnshire currently has approximately $1.7 billion in capital under management for private equity investments, including the $835 million Lincolnshire Equity Fund IV.
Lincolnshire has created significant value through more than 55 acquisitions, including private equity investments in such leading middle market companies as Amports, Bankruptcy Management Solutions, Prince Sports, Riddell Sports, American Coach Lines, Transcraft Corporation and Excelsior Radio Networks.
Headquartered in New York, Lincolnshire has offices in Atlanta, Boston, Chicago and Los Angeles, as well as thorough deal representation in Asia and Europe.