Argonaut partnered with the third-generation family led pipeline contractor to drive growth
TULSA, Okla.–(BUSINESS WIRE)–Argonaut Private Equity, a Tulsa, Okla. based private equity firm, announced it has completed the sale of Otis Eastern Service, a leading contractor of pipelines for midstream and utility companies, to Artera Services.
Located in Wellsville, New York, Otis Eastern was founded in 1936 and acquired by the Joyce family in 1981. During the next 33 years, the Joyce family grew Otis Eastern into a best-in-class pipeline contractor throughout the Northeast and Appalachian regions.
In 2014, Argonaut partnered with the Joyce family to facilitate succession planning and expand the management team and back office operations, which were designed to enable the company to efficiently scale to meet growing market demand. This transformation included the promotion of Casey Joyce to president and CEO, becoming the third-generation member of the Joyce family to lead the company.
“The success of Argonaut’s partnership with Otis Eastern speaks to our core focus of working alongside founder and family-owned businesses. We understand the dynamics of closely held companies and the importance of building upon the core foundation of a business,” said Argonaut CEO Steve Mitchell. “We serve as a strategic partner to management teams to unlock the next phase of growth in a company’s life cycle.”
“We are grateful for the partnership with Argonaut over the last seven years, which led us to our successful growth and allowed us to position the company to enter our next stage with Artera Services,” said Otis Eastern President and CEO Casey Joyce, who will continue to run the business under Artera, an industry-leading provider of integrated infrastructure services to natural gas and electric industries across 34 states.
Otis Eastern built its reputation as one of the best pipeline contractors in the industry. In looking for a partner, the Joyce family sought a private equity firm that would add value to the company, but still respect the history and culture of the business.
“Argonaut is not your typical private equity firm,” said Joyce. “Their team truly wanted to do what was right for Otis Eastern, learning our business and getting to know us and our community.”
The company specializes in complex projects that include operating in challenging terrain, densely populated areas and environmentally sensitive locations. In addition, Otis Eastern is a key corporate citizen in Wellsville, both as a leading employer and through other initiatives such as sponsorships and community programs.
“We understand the importance of the Joyce family’s legacy and the role Otis Eastern plays with all of its stakeholders,” said Mitchell. “We differentiate ourselves in the industry because we value that history and work side-by-side as partners to expand upon their success.”
Founded in 2002, Argonaut Private Equity is a private equity firm that manages investments across multiple asset classes with $3 billion of capital deployed in direct investments in key industry sectors including energy services, manufacturing and industrials.
Gibson, Dunn & Crutcher LLP served as legal counsel to Otis in connection with the transaction.
About Argonaut Private Equity
Argonaut understands the unique needs of individual businesses that operate in the central region of the United States and other underserved markets. Argonaut partners with companies to develop a strategy for accelerating growth and enhancing operations. Leveraging the collective strength of our historical investment experience, industry advisors, current portfolio companies and affiliates, Argonaut looks to share resources, best practices and key relationships between investments to create synergistic opportunities across the following sectors: energy services, manufacturing and industrials.
In Q3 2019, Argonaut had a final close on Argonaut Private Equity Fund IV, a $400 million fund that continues its strategy of generating attractive investment returns through a disciplined approach and aligning interests with those of their investors and business partners. The fund is focused on partnering with companies that provide services and products to the energy services, manufacturing and industrial sectors.
Steve Mitchell has led Argonaut since 2004, and currently serves as CEO. For more information, visit www.ArgonautPE.com.
Sheila A. Curley, APR