Denham to pay $165m for oilfield drilling company

The energy- and commodities-focused US firm has in the past two weeks agreed three deals worth approximately $365m. The firm, a Sowood Capital spin-out, closed its debut global energy fund on $2bn in May.

Denham Capital will take majority control of oilfield service company Multi-Shot with a $165 million (€110 million) equity investment.

Headquartered in Conroe, Texas, Multi-Shot is a 28-year old company that provides oilfield drilling services throughout the US.

Directional drilling, or non-vertical drilling of wells, is “the fastest growing segment of the drilling market in the North American oilfield services industry”, Bill Zartler, managing partner and head of Denham’s Energy Infrastructure Group, said in a statement.

Denham’s related portfolio holdings include Greene’s Energy Group, a multi-faceted oilfield services company it acquired in 2006 from Hosuton-based private equity fund The Catalyst Group. Last month, Greene’s agreed an add-on acquisition, Devin Rental Tools, for an undisclosed amount.

Catalyst is also an investor in Multi-Shot, as are Multi-Shot management, which will continue to manage the company’s operations.

Denham has signed three deals in the past two weeks, agreeing to invest $145 million in geothermal energy firm Vulcan Power as well as up to $60 million in biosolid recycling company VitAG Corporation.

The private equity firm, which last year spun out of collapsed hedge fund Sowood Capital, closed a $2 billion global energy fund in May. It invests across all stages and segments of capital structures.

Denham has offices in Boston, Houston, Short Hills, New Jersey and London.