Prophet Equity inks first deal after $345 mln fundraise

By Steve Gelsi

Prophet Equity plans to ramp up growth at Acton Mobile, a provider of office trailers and construction storage, after paying an undisclosed sum to acquire the company in its first investment from its new, $345 million Prophet Equity II LP fund.

CHS Capital, a firm now in wind-down mode, was the seller of Acton Mobile after its vintage 2005 CHS Private Equity VI LP fund purchased the company. SAC Capital was mezzanine lender. Wells Fargo and PNC handled financing for Prophet Equity’s acquisition.

Baltimore-based Acton Mobile sees ample opportunity for market expansion beyond its 22 regional offices in 12 U.S. states. Prophet Equity plans to build Acton Mobile into a “premier” modular rental and storage business in the Gulf Coast, Southeast, Mid-Atlantic and Midwest regions.

“Acton is ideally positioned to capitalize on a growing commercial construction market,” Charles Collie, of Prophet Equity, said in a prepared statement.

Southlake, Texas-based Prophet Equity raised its first fund in 2008 with $271 million. It began raising Fund II early in 2014, with a final close on May 31. CEO and Managing Partner Ross Gatlin said the fund was oversubscribed by about $40 million. The firm hit its $325 million hard cap for limited partners, plus a $20 million commitment from the GP.

Featured in Thomson Reuters Buyouts Magazine on August 26, 2014.

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Prophet Equity II LP Announces Acquisition of Acton Mobile

Southlake, TX and Baltimore, MD Acton Mobile (“Acton”) announced today that it has been acquired by Prophet Equity II LP, a lower and middle market focused private equity firm headquartered in Southlake, TX.

Charles Collie, Senior Executive Director of Prophet Equity, said, “We are excited about the opportunity to partner with Acton Mobile’s talented executive team led by Ingrid West and Rodney Shrader, an impressive group of Branch Managers, and the employee base as a whole to build Acton Mobile into the premier modular rental and storage business in the Gulf Coast, Southeast, Mid-Atlantic and Midwest. Acton is ideally positioned to capitalize on a growing commercial construction market and achieve extraordinary results.”

“I knew the minute we met the Prophet Equity team that we had a great fit with an ideal partner,” said Ingrid West, President of Acton Mobile. “This transaction will provide Acton Mobile with the necessary resources and capital to grow the core business,while also facilitating strategic expansion in new markets where we see ample opportunity. I could not be more pleased with the outcome of this acquisition, and I am excited about the opportunities ahead.”

“Prophet Equity targets companies and management teams just like Acton,” commented Ross Gatlin, Prophet Equity’s CEO and Managing Partner. “Acton is an asset-intensive company with unique strategic strength that will benefit tremendously from our patient capital and operational and strategic experience creating value. We are very grateful for the opportunity to work alongside and support the management team and employee base as we invest in enhancing product offerings and geographic reach for to serve our customers even better in the future.”

Charles Collie also remarked, “Prophet Equity is pleased to continue the long term financing relationship that Acton has maintained with its senior lenders in a credit facility that provides both consistency and new flexibility for the company as it expands into new markets and adds to its fleet.”

About Acton Mobile

Founded in 1968, Acton Mobile is a Baltimore, MD based provider of modular space and portable storage rental solutions to the construction, commercial, education, healthcare and government markets. With a fleet of more than 10,000 units and a branch network of 22 locations in 12 states, Acton is a multi-regional company specializing in providing temporary building solutions for non-residential construction and business customers. Acton offers rental, delivery, setup, and maintenance services, pick up of temporary mobile offices, and the sale of both new and used units.

About Prophet Equity II LP

Prophet Equity II LP is a private equity firm that uses proven, data-driven analytical techniques coupled with over 100 years of investment and management experience to invest in, unlock and realize future value today. Partnering with owners and management teams, Prophet Equity’s team utilizes a toolkit that is Fortune 500 tested and private equity proven to diagnose and drive dramatic value creation. Portfolio company management teams are highly motivated with clear, uncapped incentives based on realized business performance.

Over the last fifteen years, Prophet Equity’s Principals have invested and managed over $2 billion of value creation across entities with over $4 billion in revenue. Our control equity investments focus on strategically strong, lower and middle market businesses with significant value creation potential. These are typically found in partnerships, corporate carve-outs, divestitures and non-strategic business units of larger companies. Representative business situations include special situations, succession planning, recapitalizations, reorganizations, turnarounds, acquisitions, mergers and bankruptcies. For more information, please visit www.prophetequity.com or call us at +1.817.898.1500.

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Prophet Equity Closes Fund II, Wins Turnaround, Team, Deal of the Year and Most Outstanding Private Equity Firm of the Year Award

Prophet Equity formally announced the successful closing of Fund II with $345M of commitments, as of May 30th, at its hard cap, with only 5 months in the market. “We are very pleased to have had such broad domestic and international institutional support across academic endowments, banks, pension plans, fund of funds and family offices”, commented Ross Gatlin, CEO and Managing Partner. “Raising all of the capital, oversubscribed, without a placement agent, in only 5 months speaks volumes about investor confidence in our unique strategy, Holistic Value Creation™ approach and veteran investment team. Importantly, raising Fund II efficiently allows the team to stay focused on our primary investment mission.” Prophet’s principals’ uniquely long, robust and attractive investment track record focused on strategically viable, asset intensive, underperforming companies with significant operational improvement potential was clearly very well received by investors, as was the teams’ hefty $20M commitment to Fund II.

Prophet Equity also received three separate awards at this year’s Global M&A Network Annual Restructuring and Turnaround ceremonies held on June 24, 2014 in Chicago, IL. The Prophet team was very pleased to be honored first with the award for Private Equity Turnaround of the Year – Middle Markets, for its purchase and revitalization of Keywell Metals out of Bankruptcy Court at year end of 2013. Prophet also received the award for Private Equity Turnaround Firm of the Year amongst a host of very well regarded firms in the Turnaround space, as well as, the award for Turnaround Team of the Year.

Additionally, Prophet Equity was named the Most Outstanding Private Equity Firm of the Year in Texas at this year’s International Fund Awards. Winners were announced on April 30, 2014. The International Fund Awards, sponsored by AI Global Media and Acquisition International Magazine, celebrate excellence within Private Equity, Venture Capital, Infrastructure and Real Estate. The International Fund Awards recognize not only fund performance, but also the firms and people behind the scenes that are successfully forming, managing and advising on funds in the current market.

“We are humbled and deeply appreciative of the confidence so many have placed in our award winning strategy, approach and veteran investing team. We will remain vigilant in staying focused not on how much money we raise, but rather how well we can invest each dollar of capital on behalf of our investors. These accolades and awards which the firm has received are very kind and we are very grateful for the recognition of the entire team which is very well deserved,” Gatlin commented.

Additionally, in the midst of fund raising Prophet Equity set their sights on adding to their team and landed Greg Balliro. Greg has joined Prophet Equity as an Associate and will focus on supporting the team across multiple disciplines, including financial modeling, customer research, strategic analysis, operational improvement and implementation activities. Greg comes to Prophet with 5 years of experience, both in private equity and investment banking. In these prior roles he evaluated investment opportunities, actively worked with portfolio companies to evaluate key business decisions, diagnose and implement strategic alternatives including mergers, acquisitions and divestitures, while also working successfully to raise debt and equity financing. Greg holds a BA in Economics from Harvard University, where he graduated with Honors.

“We are pleased that Greg chose Prophet from amongst his private equity offers and couldn’t be more excited about the passion and first class investing capability he brings to our niche and the team overall”, commented Senior Executive Director, Charles Collie.

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Prophet Equity Looking to Expand Its Team with Analyst Additions

Title: Analyst/Senior Analyst

Location: Southlake, Texas

Responsibilities:

• Assist in the sourcing and evaluation of new investment opportunities

• Conduct financial and business (e.g. industry analysis, competitive position, growth prospects) diligence for prospective platform and portfolio company add-on acquisition opportunities

• Develop dynamic and integrated financial statement/cash flow models and perform ad hoc forecasting and analysis

• Participate in strategic planning and budgeting process with portfolio companies

• Prepare portfolio company valuations using various valuation methodologies

• Analyze portfolio company financials and assist with portfolio company performance reporting

• Assist in the creation of presentations for lenders and Prophet Equity’s internal investment committee and limited partners

Qualifications:

• A minimum of 2 to 3 years of previous work experience in investment banking, financial restructuring, and strategy and/or operations consulting

• Excellent verbal and written communication skills

• Demonstrated aptitude for quantitative and qualitative analysis

• Experience building complex financial models in MS Excel

• Ability to work independently and with other team members

• Strong work ethic and demonstrated desire to learn

• Significant leadership experience

• Attention to detail

• Proficiency in MS Excel, Word, and PowerPoint

• Prefer graduates with impressive academic credentials

Compensation:

Salary and annual bonus competitive and based on performance

To Apply:

Forward a resume and cover letter to recruiting@prophetequity.com

Prophet Equity Captures $255.6M for Fund II, Expects Final Close in May

07 April 2014 | By David Toll

Prophet Equity, a Southlake, Texas-based buyout shop that specializes in lighting a fire underneath under-performers, has buttoned up $255.6 million in a first close of its second lower-mid-market fund.

The firm, which debuted with a vintage 2008 fund of $271 million, launched the successor around the start of the year when CEO and Managing Partner Ross Gatlin sent out some 15 to 20 PPMs to potential investors. The first close followed in late March and included a $20 million commitment from the general partner.

Gatlin said he expects to wrap up the fund in late May at the $345 million hard cap (including the GP commitment) after dealing with the tricky issue of how to size the remaining allocations. “Not everyone will get the allocation they want,” he said, given that “indicated demand” is “much greater” than the $89 million hole left to fill.

The investor base of Fund II includes international banks, pensions and funds of funds, along with domestic endowments and funds of funds.  The minimum commitment to the fund is $5 million, according to a regulatory filing, which puts the number of investors in the first closing at 13. (The firm is not using a placement agent.)

Fundraising appears to be clicking on the strength of a 15-year track record that Gatlin promotes spanning three partnerships. Over that time Gatlin, who did a stint at Carlyle Group earlier in his career, said his team’s efforts have generated more than 5x invested capital and a gross IRR of more than 65 percent. In all, more than $400 million invested in control equity in the lower middle market has generated over $2 billion in value, much of it realized, he said, adding that Prophet Equity’s debut fund is performing right in the same neighborhood.

Prophet Equity takes an especially hands-on approach to its purchases, investing $5 million to $50 million at a time for controlling equity positions in underperforming, asset-heavy companies generating annual revenue of up to $500 million. Industries of interest include aerospace, automotive, consumer products, defense, financial services, healthcare, manufacturing, natural resources and transportation. The firm has an appetite for corporate carve-outs, divestitures, special situations, recapitalizations and turnarounds. Its website lists 11 portfolio companies, including Tafford Uniforms, a supplier of medical uniforms and accessories.

Prophet Equity has 12 executives, including General Counsel David Rex, and Marketing Director and Head of Investor Resources Stephanie Fine, according to its website. Some seven of the eight senior executives active on Fund I remain with the team, said Gatlin. The firm is looking to add two to three analysts, each with at least two or three years of experience.

Gatlin recalled that in Prophet’s first PPM, sent out around June 2008, he had projected a major downturn to hit the economy in coming months. At first investors were slow to show interest in the fund. ”Around September the phones started ringing, and they still haven’t stopped,” he said. ”Calling that correction has led to a lot of good things.” And this time around? Gatlin said he’s not predicting “as massive-looking a correction” as last time. “But there’s no question there will be some set of events that will get everyone concerned again and represent another opportunity to invest in good businesses that need smart capital… to assist them.”

Featured in Thompson Reuters Buyouts Magazine

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Prophet Equity Announced as Winner of The 8th Annual M&A Advisor Turnaround Awards

February 4, 2014

The M&A Advisor announced the winners of the 8th Annual M&A Advisor Turnaround Awards on Wednesday, January 22nd. Prophet Equity’s acquisition of Hatch Stamping Company was named a winner for the Industrial Manufacturing/Distribution Deal of the Year. The awards will be presented at the Awards Gala on Tuesday, March 11th at The Colony Hotel, Palm Beach, FL.

“Since 2002, we have been honoring the leading turnaround transac¬tions, companies and dealmakers. Prophet Equity was chosen from over 500 participating companies to receive the award. It gives us great pleasure to recognize Prophet Equity and Hatch Stamping and bestow upon them our highest honor for distressed investing and reorganization firms and professionals,” said David Fergusson, President, The M&A Advisor. “Prophet Equity represents the best of the distressed investing and reorganization industry in 2013 and earned these honors by standing out in a group of very impressive candidates.”

“Winning the Deal of the Year by The M&A Advisor is a great honor,” said Ross Gatlin, Prophet Equity’s CEO & Managing Partner. “As a Tier II auto supplier, we believed Hatch Stamping Company had unique strategic strength and very significant Prophet Full Potential Value™ potential. This award affirms our unique deal screening process, ability to structure win-wins with founders and the benefits to all stakeholders of our hands on, Holistic Value Creation™ implementation approach for all of our investment partners.”

“This award is a testament to the collaborative approach between Prophet Equity, Hatch’s highly capable management team and our transaction partners, which included Ron Hatch, the founder and continuing significant shareholder in Hatch,” said Mike Sullivan, Senior Associate of Prophet Equity.

On Tuesday, March 11th, The M&A Advisor will present the 2014 awards at a black tie Awards Gala at The Colony Hotel in Palm Beach, FL, in conjunction with the 2014 M&A Advisor Distressed Investing Summit that will feature 175 of the industry’s leading professionals participating in exclusive interactive forums led by a faculty of restructuring industry stalwarts and Bloomberg media experts. For an event profile CLICK HERE.

For a complete list of the winners CLICK HERE.

ABOUT PROPHET EQUITY LP

Prophet Equity LP is a private equity firm that uses proven, data-driven analytical techniques coupled with over 100 years of investment and management experience to invest in, unlock and realize future value today. Partnering with owners and management teams, Prophet Equity’s team utilizes a toolkit that is Fortune 500 tested and private equity proven to diagnose and drive dramatic value creation. Portfolio company management teams are highly motivated with clear, uncapped incentives based on realized business performance.

Over the last fifteen years, Prophet Equity’s Principals have invested and managed over $2B of value creation across entities with over $4 billion in revenue. Our control equity investments focus on strategically strong, lower and middle market businesses with significant value creation potential. These are typically found in partnerships, corporate carve-outs, divestitures and non-strategic business units of larger companies. Representative business situations include special situations, succession planning, recapitalizations, reorganizations, turnarounds, acquisitions, mergers and bankruptcies. For more information, please visit www.prophetequity.com or call us at +1.817.898.1500.

ABOUT HATCH STAMPING COMPANY

Headquartered in Chelsea, Michigan, Hatch is a leading manufacturer of complex metal stampings and assemblies to the automotive industry. The company supplies the world’s leading manufacturers of fuel, braking, roofing, and interior automotive systems with complex safety critical metal components and mechanisms through its six manufacturing centers of excellence, including a state of the art facility in Queretaro, Mexico. Hatch provides a broad spectrum of value-added capabilities, including robotic welding and subcomponent assembly, e-coating, in-line vision inspection and error detection, prototype design and construction, and full tool and die-build and repair. Combining the most advanced and efficient automation, production, and secondary operation equipment with in-house engineering resources, Hatch has established itself as a trusted manufacturing partner to a marquee and global customer base of Tier 1 automotive suppliers. www.hatchstamping.com

ABOUT THE M&A ADVISOR

The M&A Advisor was founded in 1998 to offer insights and intelligence on the M&A market. Over the past fifteen years we have established the premier global network of M&A, Turnaround and Finance professionals. Today, we have the privilege of presenting, recognizing the achievements of, and facilitating connections between the industry’s top performers throughout the world with a comprehensive range of services including:

• M&A ADVISOR SUMMITS. Exclusive gatherings of the industry “thought leaders”

• M&A ADVISOR AWARDS. Recognizing and rewarding the leading firms and professionals.

• M&A LINKS. Direct connection service for domestic and international dealmakers and service providers.

• M&A ALERTS. Delivering relevant news and the industry leader’s perspective.

• MandA.TV. Reporting on the key industry events and interviewing the newsmakers.

• M&A MARKET INTEL. Comprehensive research and reporting on the key issues facing the industry.

To learn more about the M&A Advisors leadership services contact lpisareva@maadvisor.com

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Prophet Equity To Acquire Assets of Keywell L.L.C.

CHICAGO, IL.–(BUSINESS WIRE)— The U.S. Bankruptcy Court in the Northern District of Illinois today approved a sale order pursuant to which KW Metals, LLC, an entity formed and controlled by Prophet Equity, a private equity firm based in Southlake, Texas, is authorized to complete the purchase of assets of Keywell L.L.C., an Illinois limited liability company.

The transaction is scheduled to close on or about December 31, 2013 and thereafter the business will operate as Keywell Metals LLC. Keywell Metals will be headquartered in Chicago, IL, with collection and processing facilities located in West Mifflin, PA, Falconer, NY, Monroe, NC and Atlanta, GA.

Founded in 1924, Keywell L.L.C. is a leading supplier of recycled stainless steel, high-temperature alloys (”HTA”) and titanium in North America. Using its deep understanding of these metals, Keywell has established itself as a trusted value-added partner to aerospace metals and specialty steel producers. Customers rely upon Keywell’s supply relationships and metallurgy expertise to produce highly engineered metal grades that meet demanding end-user requirements.

Ross Gatlin, Managing Partner & CEO of Prophet Equity, said “We were first introduced to Keywell in 2009 and were favorably impressed with the management team and the history and positioning of the business. From 2009 to the present, we came to the view that Keywell is a well-managed and strategically strong business that experienced unprecedented difficulties due to the economic downturn and slow economic growth. Through our purchase of the business, we are excited about its future and look forward to providing opportunities for employees and continuing to play an important role for suppliers and customers.”

Gatlin also noted, “Our equity fund is specifically designed to bring new life to businesses like Keywell. We have a distinctive track record of providing both the capital and know how needed to not only preserve existing value, but also to provide the investment capital necessary to unlocking future value. We have a long history of expanding capacity and dramatically growing strong platforms like Keywell and are excited to work alongside the existing management team.”

About Prophet Equity LP

Prophet Equity LP is a private equity firm that uses proven, data-driven analytical techniques coupled with over 100 years of investment and management experience to invest in, unlock and realize future value today. Partnering with owners and management teams, Prophet Equity’s team utilizes a toolkit that is Fortune 500 tested and private equity proven to diagnose and drive dramatic value creation. Portfolio company management teams are highly motivated with clear, uncapped incentives based on realized business performance.

Over the last fifteen years, Prophet Equity’s Principals have invested and managed over $2B of value creation across entities with over $4 billion in revenue. Our control equity investments focus on strategically strong, lower and middle market businesses with significant value creation potential. These are typically found in partnerships, corporate carve-outs, divestitures and non-strategic business units of larger companies. Representative business situations include special situations, succession planning, recapitalizations, reorganizations, turnarounds, acquisitions, mergers and bankruptcies. For more information, please visit www.prophetequity.com or call us at +1.817.898.1500

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Prophet Equity Honored Recipient of The International Fund Awards 2013 Lower Middle Market Deal of the Year

Southlake, Texas- Prophet Equity was honored to be the recipient of The International Fund Awards 2013 Lower Middle Market Deal of the Year Award for the uniquely structured acquisition of the assets of USA Mobile Crane LLC. The winners were announced on May 31, 2013. “We are very pleased to be increasingly recognized for our sophisticated, seller friendly approach to quickly and effectively closing complex, lower middle market platform and add-on acquisitions. The team did a fantastic job getting this done fast on behalf of hardworking family owners, partnerships and companies who deserve win-win structures.”

Prophet Equity acquired the assets of USA Mobile Crane, another recent strategic add-on to the Allegiance Crane platform, in August of 2012. The acquisition continued the targeted expansion of Allegiance’s fleet (while also facilitating an attractive recapitalization of the platform) further extending the portfolio of products and services for its blue chip customer base into the South Texas and Eagle Ford Shale regions. The acquisition also added and integrated additional maintenance, repair, staging, dispatch, lodging and fleet services infrastructure to our already existing facilities and locations in South Texas.

The International Fund Awards, which are sponsored by AI Global Media and Acquisition International Magazine, celebrate excellence within Private Equity, Venture Capital, Infrastructure and Real Estate. The awards recognize not only fund performance, but also the firms and people behind the scenes that are successfully forming, managing and advising on funds in the current market. The awards are given solely on merit and are awarded to commend those most deserving for outstanding work over the last 12 months.

“Our Fund Award winners have demonstrated their expertise and commitment to their clients in a challenging market,” said Charlotte Abbott, Chief Coordinator of the International Hedge Fund Awards. “Their continuing dedication and success is a fantastic reflection of the industry as a whole and we are pleased to provide them with this well-deserved recognition.”

About Allegiance Crane & Equipment, LLC

Allegiance Crane & Equipment, LLC was formed in August 2010 to purchase assets from Gulfstream Crane, LLC (dba General Crane USA). Staffed by a highly skilled workforce, Allegiance operates an equipment fleet comprised of over 150 cranes and hoists and a supporting fleet of trucks, trailers and other assets. The crane fleet (ranging from 20 – 600 tons in capacity) includes mobile cranes, crawler cranes and tower cranes. These assets are utilized to provide services to customers in a variety of markets including the oil and gas, petrochemical, refining, marine, power and the commercial and infrastructure construction industries. Allegiance is dedicated to building on its position as an industry leader in providing the highest quality, most reliable, safest services and dealing with its customers and vendors with the highest level of integrity.

About Prophet Equity LP

Prophet Equity LP is a private equity firm that uses proven, data-driven analytical techniques coupled with over 100 years of investment and management experience to invest in, unlock and realize future value today. Partnering with owners and management teams, Prophet Equity’s team utilizes a toolkit that is Fortune 500 tested and private equity proven to diagnose and drive dramatic value creation. Portfolio company management teams are highly motivated with clear, uncapped incentives based on realized business performance.

Over the last decade alone, Prophet Equity’s Principals have invested and managed over $2B of value creation across entities with over $4 billion in revenue. Our control equity investments focus on strategically strong, lower and middle market businesses with significant value creation potential. These are typically found in partnerships, corporate carve-outs, divestitures and non-strategic business units of larger companies. Representative business situations include special situations, succession planning, recapitalizations, reorganizations, turnarounds, acquisitions, mergers and bankruptcies. For more information, please visit www.prophetequity.com or call us at +1.817.898.1500.

Doug Chapple Joins Prophet Equity as President and COO of Francis Drilling Fluids & HLI Energy Services

May 1, 2013

Southlake, TX- Prophet Equity (“Prophet”) announces today that it has appointed Doug Chapple as President and Chief Operating Officer of two of its portfolio companies, Francis Drilling Fluids and HLI Energy Services. “Having worked with Doug to successfully deliver tremendous value to investors in prior portfolio companies, I am thrilled to reunite again at Prophet to build value once again through operational improvements, organic and acquisitive growth at two of our most strategically positioned platforms”, commented Ross Gatlin, Managing Partner of Prophet.

Doug Chapple is leaving the President role of The Walker Group, a manufacturer of stainless steel and aluminum tanks and vessels where he helped lead the turnaround, transformation and build up of a smaller, underperforming initial platform company into a much larger, more profitable and more diversified market leader. Mr. Chapple has decades of operational expertise leading, building and managing both public and privately owned companies. He has been very successful in spearheading add-on acquisitions and their operational integration into existing companies while also maintaining significant organic growth. “Having successfully optimized operations and built best in class customer service oriented businesses with Ross as a private equity owner in the past, I am very confident that our common approach to diagnosing and building value will be very powerful at these strategic, very well positioned platforms in one of the most exciting industry spaces in America.”

Mr. Gatlin spoke about Prophet’s continuing focus in and around energy services through these and other portfolio companies, “Bringing proven private equity value creation capability like Doug’s into the veteran teams’ of two of our most significant platforms focused on shale related energy services through our expanding capacity and network of over 20 storage, transloading, distribution and disposal facilities across the country highlights our continuing focus on building and deploying the very best service capabilities for our long term, high quality international, national, regional and local customers.” Mr. Chapple complements a very impressive team of veteran senior executives, managers and team members dedicated to a common vision of being recognized by our customers as the best in Americas in providing service. His recruitment also an example of our continuing principle of attracting the most qualified team members and with his and the veteran executive management team’s assistance we will continue to aggressively invest in expanding national network. Regarding the team, Mr. Chapple said, “It is a distinct pleasure to join such an experienced, capable team of industry veterans in implementing an exciting, visionary growth and expansion plan in one of the most vital and growing industries in America.”

About Francis Drilling Fluids

Founded in 1977, Francis Drilling Fluids is the largest fracturing materials logistics company in the U.S. Additional service lines include the rental of certain oilfield equipment such as tanks and hoses as well as the provision of cleaning services. Headquartered in Crowley, Louisiana with additional facilities servicing onshore providers in that state as well as in Texas, Oklahoma, and Wyoming, FDF provides services to the Haynesville Shale (East Texas and Louisiana), Woodford Shale (Oklahoma), Eagle Ford Shale (South Texas), Midcontinent/ Niobrara Shale (Utah/ Colorado/ Wyoming) as well as the Permian Basin (West Texas). FDF also provides Gulf of Mexico deepwater offshore services through its facility in Fourchon, Louisiana, and Gulf of Mexico shelf and inland water services through its facilities in Cameron and Berwick, Louisiana. www.fdfltd.com

About HLI Energy

HLI Energy Services is an oilfield services company headquartered in Cleburne, Texas that focuses on providing solids control logistics and transportation services for E&P customers. HLI currently operates in the Barnett Shale providing customers disposal & logistics support around our 1,000 acres of commercially permitted land farms. www.hlienergy.com

About Prophet Equity LP

Prophet Equity LP is a private equity firm that uses proven, data-driven analytical techniques coupled with over 100 years of investment and management experience to invest in, unlock and realize future value today. Partnering with owners and management teams, Prophet Equity’s team utilizes a toolkit that is Fortune 500 tested and private equity proven to diagnose and drive dramatic value creation. Portfolio company management teams are highly motivated with clear, uncapped incentives based on realized business performance.

Over the last decade alone, Prophet Equity’s Principals have invested in and managed over $2B of value over companies with over $4 billion in revenue. Our control equity investments focus on lower and middle market companies with strategically strong businesses with significant value creation potential, such as those found in partnerships, corporate carve-outs, divestitures and non-strategic businesses of larger companies. Representative business situations include special situations, succession planning, recapitalizations, reorganizations, turnarounds, acquisitions, mergers and bankruptcies. For more information on Prophet Equity or to discuss seeing future value in your situation today, please contact us at +1.817.898.1500 or please visit www.prophetequity.com .

Prophet Equity’s Allegiance Crane Completes Action Crane Service Acquisition, Expanding its Crane Fleet and Service Line in South Florida

Southlake, TX- Prophet Equity announces today that its portfolio company, Allegiance Crane & Equipment, LLC (“Allegiance”), a provider of crane and rigging services, has completed the purchase of the assets of Action Crane Service, Inc. (“Action Crane”), based in Fort Lauderdale, Florida. The combined business will operate as Allegiance Crane & Equipment, LLC. Ross Gatlin, CEO and Managing Partner of Prophet Equity commented, “The successful acquisition of Action Crane enhances Allegiance’s South Florida presence and improves its ability to take advantage of the rapidly improving market in the area.”

The acquisition of Action Crane’s business, with a fleet consisting of mobile cranes (17 – 90 tons in capacity) and the accompanying trucks, trailers and other assets, represents an expansion of Allegiance’s presence in the South Florida market with additional assets, employees and customers. James Robertson, President of Allegiance, said, “We are honored to add such experience and history from Action Crane to the Allegiance family. Most importantly, I am continually impressed with their energy and we are all invigorated by the added opportunities we have gained by combining our forces.”

Headquartered in Pompano Beach, FL, with operations in Pompano Beach, Houston, TX, San Antonio TX and Carrizo Springs, TX, Allegiance has a fleet of over 150 cranes and hoists. The crane fleet (ranging from 17 – 650 tons in capacity) includes mobile cranes, crawler cranes and tower cranes. Pelham Smith, Managing Director, commented “With our uniquely flexible strategic lines of capital and credit for growth, we continue to acquire the most strategic assets which allow us to provide services to our most valuable customers across a variety of markets including the oil and gas, petrochemical, refining, marine, power and the commercial and infrastructure construction industries.”

About Allegiance Crane & Equipment, LLC

Allegiance Crane & Equipment, LLC was formed in August 2010 to purchase assets from Gulfstream Crane, LLC (dba General Crane USA). Staffed by a highly skilled workforce, Allegiance operates an equipment fleet comprised of over 100 cranes and hoists and a supporting fleet of trucks, trailers and other assets. The crane fleet (ranging from 20 – 600 tons in capacity) includes mobile cranes, crawler cranes and tower cranes. These assets are utilized to provide services to customers in a variety of markets including the oil and gas, petrochemical, refining, marine, power and the commercial and infrastructure construction industries. Allegiance is dedicated to building on its position as an industry leader in providing the highest quality, most reliable, safest services and dealing with its customers and vendors with the highest level of integrity.www.allegiancecrane.com

About Prophet Equity LP

Prophet Equity LP is a private equity firm that uses proven, data-driven analytical techniques coupled with over 100 years of investment and management experience to invest in, unlock and realize future value today. Partnering with owners and management teams, Prophet Equity’s team utilizes a toolkit that is Fortune 500 tested and private equity proven to diagnose and drive dramatic value creation. Portfolio company management teams are highly motivated with clear, uncapped incentives based on realized business performance.

Over the last decade alone, Prophet Equity’s Principals have invested and managed over $2B of value across over 30 entities with over $4 billion in revenue. Our control equity investments focus on lower and middle market companies with strategically strong businesses with significant value creation potential, such as those found in partnerships, corporate carve-outs, divestitures and non-strategic businesses of larger companies. Representative business situations include special situations, succession planning, recapitalizations, reorganizations, turnarounds, acquisitions, mergers and bankruptcies. For more information, please visit www.prophetequity.com or call us at +1.817.898.1500.