Group Led By Element Partners, CSL Capital Buy Environmental Drilling Solutions

Acquired company providing closed-loop drilling solids control services to North American oil and gas industry.

Radnor, Pa.-based energy and industrial technology-focused private-equity fund Element Partners and Houston-based energy-services private-equity firm CSL Capital Management have along with North Sky Capital and key members of management acquired Lafayette La.-based Environmental Drilling Solutions.

Environmental Drilling Solutions provides closed-loop drilling solids control services to the North American oil and gas industry. EDS' management team will continue to run the business, and current investor NGP Energy Technology Partners will retain an interest in the company.

EDS serves top-tier oil and gas operators in Louisiana, Texas, Oklahoma, Wyoming, Pennsylvania, Ohio, West Virginia, and the Gulf of Mexico. The company's solutions enable operators to dramatically decrease their solids disposal expenses, recycle more drilling fluid, simplify and streamline drilling activity, and reduce their environmental footprint.

PNC Bank arranged a syndicated credit facility to support the transaction and additional proceeds from the investment will be used to expand operations both onshore and offshore.

EDS chief executive Kirby Arceneaux says, “We have experienced tremendous growth over the past two years, and are committed to building a world-class company. Element and CSL bring us the experience and resources that will help take EDS to the next level.”

"EDS' innovations in closed-loop solids control solutions provide extraordinary economic and environmental value for the oil & gas industry,” says David Lincoln, managing director at Element Partners. "We are truly excited to partner with EDS' management team to continue their growth and expand their scope of services."

CSL Capital managing director John Griggs says, "The EDS team has built a best-in-class service business that understands their customers' needs and addresses them in a high value-add, low cost manner. We at CSL specialize in the energy services space, and EDS is a true innovator in the field."

Farlie, Turner & Co. was financial advisor to EDS.