Midfield Supply Ltd.

Midfield Supply Ltd.

Brooks, Alberta, Canada

has been acquired by

Red Man Pipe & Supply Co.

Tulsa, Oklahoma

Capital Alliance Corporation initiated
this transaction and assisted in its closing.

Midfield Supply Ltd.

Midfield Supply Ltd. is a leading provider of technologically advanced products to the energy sector. With the aid of Capital Alliance, Midfield sold its business to Red Man Pipe and Supply Co., a producer of oilfield and industrial products, for approximately $150 million in aggregate value.

Over its twenty-year history, Midfield Supply boasted an astounding compound annual growth rate of 25%, successfully diversifying its core retail business into manufacturing, consulting, and outsourcing services. At the time of the transaction, the company operated fifty-five storefronts and employed over four hundred people.

For years, shareholders had reinvested substantial equity into the company to fund its growth and comply with bank covenants. When many of Midfield’s one hundred shareholders desired to liquidate their positions, the company solicited the aid of Capital Alliance.

Despite the difficulty of achieving premium valuations in the PVF (pipe, valves, fittings) distribution sector, Capital Alliance generated several offers from strategic and financial acquirers who had expertise within the energy industry and the available capital to fund future growth initiatives. Red Man Pipe and Supply emerged as the most obvious acquirer. Red Man maintained a dominant position in the United States, while Midfield was its equivalent in western Canada.  Capital Alliance successfully bridged the value gap and presented the many synergies across vendor and distribution networks, key customer relationships, and outsourcing alliances.

Capital Alliance negotiated over $100 million in cash at closing, payment of shareholder debt and relief from corporate debt, continued profit distribution, and an option to sell the remaining shares at a negotiated multiple.

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