Metalmark, Waud to invest $300m in petroleum products

The mid-market firms will pick up a majority stake in the private equity-established energy logistics company. Founders Northwest Capital Appreciation and RBC Capital Partners will retain equity stakes.

Private equity firms Metalmark Capital and Waud Capital Partner have agreed to acquire a majority stake in energy logistics company Maxum Petroleum for $300 million.

Old Greenwich, Connecticut-based Maxum was established as an acquisition vehicle in October 2003 by three private equity firms: Waud Capital, Northwest Capital Appreciation and RBC Capital Partners though spin-off Cadent Energy Partners. The company has made 11 petroleum products acquisitions to date.

Following the investment by Metalmark and Waud Capital, Northwest Capital and RBC Capital will continue to maintain an undisclosed equity stake in Maxum.

Maxum had filed for an initial public offering on the New York Stock Exchange on 13 August 2007. As of 10 January 2008, the company planned to issue 16.7 million shares with an expected price between $14 and $16 per share.

“Maxum is not withdrawing its registration statement at this point in time,” a company spokesperson told PEO.

New York-based Metalmark, a spin-out of Morgan Stanley, was absorbed into Citi in December 2007. The group continues to manage several North America-focused funds that remain captive at Morgan Stanley, as well as Metalmark Capital Partners, a $1.2 billion fund that was established following the firm’s founding.

Metalmark makes mid-market investments in the energy and natural resources, healthcare, industrial and financial services sectors.

Chicago-based Waud Capital was founded in 1993 and invests in business and consumer services, healthcare services, specialty distribution and value-added manufacturing. The firm’s debut fund closed on $115 million in 1998. In Spring 2005, the firm filed documents with the SEC indicating it had amassed $244 million in commitments for a second vehicle with an undisclosed target.