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.

The Selling Company: Midfield Supply Ltd. is one of the leading suppliers of technologically advanced products to the energy sector in western Canada. Over its 20-year history, it successfully diversified into manufacturing, consulting, and outsourcing services, in addition to consistently growing its core retail business. At the time of the transaction, it operated 55 company-owned storefronts, employed over 400 people, and achieved a compound annual growth rate of 25% since its inception.

Why the Company Was Sold: Shareholders reinvested substantial equity into the company year after year to fund its growth and comply with bank covenants. Many of its 100 shareholders expected a partial liquidity of their position.

Capital Alliance’s Performance: Capital Alliance generated several offers from strategic and financial acquirers who had expertise within the energy industry and substantial capital available to fund future growth initiatives.

Terms of the Transaction: Terms included substantial cash at closing, payment of shareholder debt, relief from corporate debt, continued profit distribution, and an option to sell the remaining shares at a negotiated multiple.

The Acquiring Company: Red Man Pipe and Supply Co., established in 1977, is a leading supplier of consumable oilfield and industrial supplies, tubular products, pipes, valves, and fittings. It has 67 service locations in 20 U.S. states and employs a staff of 935. 

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