Apache Industrial Services

The business

Apache Industrial Services ("Apache") is a leading provider of soft-craft services, including refractory, fireproofing, scaffolding, coatings, and insulation to refining, chemical, power, and industrial facilities located across the US Gulf Coast region.

The deal

MML led the acquisition of Apache in 2013, in a proprietary, off-market deal, alongside Mike and the company’s management team and two of MML’s longstanding Limited Partners. The investment into Apache followed MML’s long history of successful investments focused on energy and infrastructure in the US Gulf Coast region, including CoreLabs, XServ (now part of the Brock Group) and TNT Crane & Rigging. Our initial investment re-aligned the shareholder base and allowed management to invest into a meaningful minority ownership stake.

The exit

Supported by MML’s significant domain expertise and Apache’s experienced management team, Apache achieved material growth and margin enhancement during our investment timeframe. We provided follow-on capital to fund organic growth initiatives, including funding to construct a newly dedicated services and training facility, and additional investment to develop the company’s asset base (e.g. scaffolding). Apache also completed three add-on acquisitions to strategically expand its footprint along the US Gulf Coast. In 2017, after the company nearly quadrupled its EBITDA, MML successfully exited our investment in Apache via a sale to a Toronto-based private equity investor.