Hoover, First Reserve Announce Partnership
Hoover Container Solutions has entered into an agreement to partner with First Reserve, the largest global private equity firm exclusively focused on energy. Financial terms of the transaction were not disclosed.
One of the global industry leaders in oilfield fluids container solutions, Hoover operates worldwide through 15 facilities in North and South America, Europe, Australia, the Middle East and Southeast Asia. The company has a rental fleet of approximately 40,000 stainless steel intermediate bulk containers (IBCs), 8,000 cargo carrying units and more than 15,000 slings, GPS asset tracking units and other peripheral equipment.
Hoover was the original manufacturer of stainless steel IBCs approximately 50 years ago and has a history of pioneering and innovating material handling solutions since 1911. Hoover has earned a reputation with its loyal customers for being a high-quality service provider.
Hoover provides customer-driven solutions through a vertically integrated model that includes design, manufacturing, maintenance, certification and cleaning services through the entire life cycle of their products. The company’s products are critical to the energy and industrial value chain with a business model that is, in First Reserve’s view, generally resilient to market cyclicality.
First Reserve believes Hoover’s products are exposed to several favorable macro trends, including the continued demand for oilfield production chemicals, further development of offshore and deepwater oil and gas opportunities as well as the continued investment in North American petrochemical facilities.
Donald Young, CEO of Hoover, commented, “After a thoughtful process, we chose First Reserve as our partner to help support Hoover in its next stage of growth. We expect First Reserve will bolster Hoover’s already strong financial position and allow us to accelerate our growth plan as well as continue to introduce innovative products and services to the market.”
Neil Wizel, managing director of First Reserve, commented, “We are excited to partner with CEO Donnie Young and his management team to progress Hoover’s growth strategy focused on providing the energy, petrochemical and general industrial markets with specialized fluid handling and container solutions. We believe Hoover has demonstrated a strong track record of providing its customers with high-quality products and services and that the company is well-positioned for continued expansion in North America and internationally.”