Expanding its footprint in the midstream inspection and integrity services
market, Desert NDT, LLC, today announced it has acquired the assets of
Midwest Inspection Services L.P., of Perryton, Texas. This is Desert's first
purchase since receiving a majority investment from private equity firm Sterling
Partners in March. Financial terms of the purchase were not disclosed.
Midwest Inspection Services has provided a variety of nondestructive testing
(NDT) services to midstream oil and gas customers for more than 30 years. The
acquisition of Midwest extends Desert's service territory into Colorado and
Nebraska. It also deepens Desert's presence in the Texas Panhandle region,
South Texas and western Oklahoma. The combined company will employ about
500 people.
Midwest employs more than 200 people and operates four locations, including
Perryton and Pharr, Texas, Elk City, Okla., and Brighton, Colo. Its services
encompass industrial radiography, ultrasonics, magnetic particle inspection,
liquid penetrant inspection and certified welding inspection.
David Ezzell and his father Raymond have been co-owners of Midwest
Inspection Services since 1985. David will continue to oversee operations for
Midwest's locations.
"With the addition of Midwest Inspection Services, Desert NDT is creating a
powerful inspection and integrity services footprint across the country's leading
oil-and-gas production regions," said Doug Frey, CEO of Desert NDT. "Desert
now offers services across 10 states through 15 locations, including a new
office established in Bismarck, N.D. to service the strategically important
Bakken Shale play."
"Desert NDT aspires to be the provider, employer and acquirer of choice in this
sector, and we plan to grow our business aggressively, through both organic
expansion and acquisitions," Frey added. "We have a robust acquisition
pipeline."
"We are very pleased to join with Desert NDT, and we already have made
substantial progress toward integrating our operations to ensure uninterrupted
client service," said David Ezzell. "Together, we look forward to providing our
clients with best-practice service solutions."
Alan Macksey, a Sterling Partners managing director, noted that sharply rising
U.S. oil and natural gas production has boosted demand for reliable
nondestructive testing services for pipelines and midstream infrastructure.
"Desert NDT's acquisition of Midwest is consistent with the strategy behind our
initial investment in the business," he said. "We back strong companies in
growing industries, and Desert NDT is an emerging leader in midstream
inspection and integrity services."
About Desert NDT
Desert NDT, founded in Odessa, Texas, in 1989, started as a welding X-Ray
company and has evolved into a full-service non-destructive testing company.
A portfolio company of Sterling Partners since March 2012, Desert NDT offers
ultrasonic testing, digital X-Ray and integrity management services in addition
to the traditional X-Ray testing. Desert's non-destructive testing services
ensure the safe installation and operation of new gathering pipelines and other
midstream oil & gas infrastructure. For more information please visit
www.desertndt.com.