PetroCom LLC has entered into a binding agreement to be acquired by an affiliate of H.I.G. Capital
, a Miami-based private investment firm. Headquartered in New Orleans, LA, PetroCom is a leading cellular carrier in the Gulf of Mexico and a full-service telecommunications solutions provider for the offshore industry.
PetroCom President Ken Wright commented, "We are thrilled to partner with a premier private equity firm as we enter our next stage of growth. H.I.G.'s investment represents an important milestone in our Company's history, and their support will enable us to significantly expand our footprint. We will continue to provide excellent service to our valued customers in the Gulf, while broadening our service offerings into new products and markets, both domestic and international."
Earlier this year H.I.G., through its Bayside Capital affiliate, acquired Sola Communications
, a leader in the delivery of telecommunications related services for the offshore oil and gas and emergency services markets. Anthony DiSimone, Managing Director of H.I.G., said, "We look forward to working with PetroCom and its management team to build the premier Company in offshore remote communications. H.I.G. is committed to growing its remote communications businesses, and believes that both PetroCom's cellular and satellite offerings are highly complementary to Sola's suite of satellite and related customized communications solutions. The combined businesses will allow us to significantly broaden the scope of the critical services we provide for our customers." According to Mr. DiSimone the existing executive management teams at each company will remain in place.
"PetroCom's mission is to fulfill the ever-expanding voice and data communications needs of the offshore oil and gas industry," added Ken Wright, president and COO of PetroCom. "Teaming our cellular and satellite expertise with Sola's customized communications solutions is a win-win for both companies, and more importantly, our current and future customers."
PetroCom is the fifth Gulf Area company in which H.I.G. has invested in the past few years. Others include Rotorcraft Leasing in Broussard, La., Houma-based Redfish Rentals, Total Safety, which is based in Houston with offices throughout Louisiana, and Sola Communications.
The transaction is subject to government approval and is expected to close sometime in the 4th quarter of 2006. Simmons & Company International served as financial advisor to PetroCom for this transaction.