NEW YORK, February 20, 1998 - Castle Harlan, Inc., the New York merchant bank, announced today it had completed the acquisition of the compression services division of Tidewater, Inc. (NYSE: TDW) in a $360 million transaction.
The division, which had been called Tidewater Compression Service, Inc., has been renamed Universal Compression, Inc., said Jeffrey M. Siegal, a Castle Harlan managing director. The company's headquarters will continue in Houston, Texas, he said. Existing management will remain in place, including Stephen A. Snider, 50, the president and chief executive officer.
Universal Compression is one of the world's three largest independent providers of natural gas compression equipment and services, primarily to the energy industry. Its principal operations are in the United States, but it also operates in Canada, Europe, Venezuela, Argentina and the Pacific Rim.
The company was acquired by Castle Harlan Partners III, L.P. (CHP III), management and certain investors working closely with Castle Harlan. CHP III is an investment partnership organized by Castle Harlan a year ago with capital commitments of $630 million
Universal Compression is the third company in Castle Harlan's portfolio with a significant involvement in the energy business. Castle Harlan Partners II owns Statia Terminals Group N.V., one of the world's largest independent marine terminal companies, and U.S. Synthetic Corporation, the world's largest independent manufacturer of synthetic diamonds used in oil and gas drill bits.
Castle Harlan was founded in 1987. The firm is headed by John K. Castle, its chairman and former president and chief executive officer of Donaldson, Lufkin & Jenrette, the Wall Street investment firm, and Leonard M. Harlan, Castle Harlan president, and former chairman and founder of The Harlan Company, a real estate investment and financial advisory firm.
The firm's portfolio companies have included Ethan Allen Interiors, the furniture company; Morton's Restaurant Group, the nationwide chain of upscale steakhouses; Smarte Carte, the leading airport baggage cart rental company, and Delaware Management, a major international money-management firm with assets under management of more than $32 billion. Since its founding, Castle Harlan has completed acquisitions exceeding $3.5 billion.