M&A Deal Summary

Kingswood Capital Management Acquires Covenant Testing Technologies

On October 24, 2023, private equity firm Kingswood Capital Management acquired energy services and equipment company Covenant Testing Technologies from White Deer Energy

Acquisition Highlights
  • This is Kingswood Capital Management’s 1st transaction in the Energy Services and Equipment sector.
  • This is Kingswood Capital Management’s 10th transaction in the United States.
  • This is Kingswood Capital Management’s 2nd transaction in Texas.

M&A Deal Summary

Date 2023-10-24
Target Covenant Testing Technologies
Sector Energy Services and Equipment
Buyer(s) Kingswood Capital Management
Sellers(s) White Deer Energy
Deal Type Secondary Buyout

Target

Covenant Testing Technologies

The Woodlands, Texas, United States
Covenant Testing Technologies provides flowback and well testing services with a special focus on horizontal and pad drilling for the upstream oil and gas services industry. Covenant Testing Technologies was founded in 2013 and is based in The Woodlands, Texas.

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Buyer(S) 1

DESCRIPTION

Kingswood Capital Management is an operationally focused private equity firm focused on complex situations throughout North America. The Firm targets control positions in middle-market companies with revenues of $100 to $500 million. Sectors of interest include business services, consumer, retail, energy, industrials, technology, media, communications, and value-added distribution. Kingswood Capital Management was established in 2013 and is based in Los Angeles, California.


DEAL STATS #
Overall 12 of 19
Sector (Energy Services and Equipment) 1 of 1
Type (Secondary Buyout) 1 of 1
State (Texas) 2 of 2
Country (United States) 10 of 16
Year (2023) 2 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2023-07-24 Obsession

Miramar, Florida, United States

Obsession is a retailer of authentic designer and proprietary fragrances and related accessories. The company operates over 215 retail stores across 38 states under The Fragrance Outlet and Perfumania banners, as well as related e-commerce websites. Its stores offer a broad assortment of 1,000+ SKUs, including hard-to-find and limited-production fragrances. Obsession is based in Miramar, Florida.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2023-11-16 G Fuel

Hauppauge, New York, United States

G Fuel provides clients with performance-driven alternatives to standard energy drink products. The company's products include Energy Formula, ready-to-drink cans, and powdered Hydration Formula. G Fuel is based in Hauppauge, New York.

Buy -

Seller(S) 1

SELLER

White Deer Energy

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2008
PE ASSETS 2.7B USD
Size Large
Type Sector Focused
DESCRIPTION

White Deer Energy is a specialist private equity investment group focused on the energy sector. White Deer targets equity investments of $25 to $100 million in companies active in oil and gas production, oil service and equipment manufacturing and midstream infrastructure. Prospective transaction situations include companies in need of capital for growth, companies with follow-on opportunities, or management teams looking to continue to operate their companies. The Firm prefers control or co-control positions. White Deer Energy was formed in 2008 and has offices in Houston, Texas and New York, New York.


DEAL STATS #
Overall 14 of 17
Sector (Energy Services and Equipment) 10 of 13
Type (Secondary Buyout) 2 of 3
State (Texas) 7 of 7
Country (United States) 13 of 15
Year (2023) 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2023-04-01 WeldFit

Houston, Texas, United States

WeldFit is a manufacturer and provider of critical pipeline maintenance, emissions management, and flow assurance products and services to the US natural gas infrastructure market. WeldFit was founded in 1968 and is based in Houston, Texas.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2024-01-30 Extract

Tulsa, Oklahoma, United States

Extract Companies is an artificial lift company. Through its Extract Production Services and Hoss Pump Systems subsidiaries, Extract provides ESP, Gas Lift, and Horizontal Pump Systems to the oil production and saltwater disposal markets in the US. Extract is based in Tulsa, Oklahoma.

Sell -