An affiliate of New York City-based Wellspring Capital Management LLC is buying OMNI Energy Services Corp. The definitive agreement calls for Wellspring to acquire all of OMNI’s outstanding shares for $2.75 per share in cash. The transaction is valued at $122 million, including assumption of debt.
OMNI, which is headquartered in Carencro, provides environmental and seismic services to the domestic oil and gas industry, and Wellspring Capital Management is a middle-market private equity firm that manages more than $2 billion of private equity capital.
The agreement was unanimously approved by OMNI’s board of directors after the recommendation of a special committee of independent directors. The cash consideration represents a premium of almost 30 percent over the closing price of OMNI shares on June 3. OMNI is publicly traded on the Nasdaq stock exchange.
“We believe this transaction will deliver an immediate and significant premium for our shareholders especially in light of the uncertain markets after the unprecedented drop in our end markets in 2009 and the continued current uncertainty in the Gulf of Mexico,” says Brian J. Recatto, president and CEO of OMNI.
Completion of the transaction, which is expected in the second half of 2010, is subject to approval by OMNI’s shareholders, regulatory approvals and customary closing conditions.
The transaction is not subject to a financing condition: Wellspring has furnished OMNI with commitment letters for the necessary debt financing. Three directors of OMNI, including Recatto, are participating with Wellspring in the transaction.
The merger agreement allows OMNI until July 16, 2010, to actively solicit other possible bidders and to respond to unsolicited inquiries by others interested in acquiring OMNI. Stephens Inc. will assist OMNI in connection with dealings with other possible bidders. Should a superior proposal be received and accepted, OMNI may, subject to certain conditions, including payment of a “break-up” fee of approximately $1.8 million plus expenses up to $0.75 million, terminate the merger agreement with Wellspring.
In light of the merger agreement, OMNI will not hold its annual shareholders meeting scheduled for June 9. Instead, OMNI expects to hold a special meeting of shareholders to vote on approval of the merger agreement in the second half of 2010.
Downtown Lafayette restaurant launches new concept near Le Triomphe
Reamco founders Brent Milam and Ashley Lane now shareholders in acquiring company and part of its management team.
The board hopes to recover all fees paid, plus one-half, along with what could amount to hundreds of thousands in additional penalties.
Oh, the irony... or something like that.
The Louisiana Workforce Commission said Friday that initial claims rose to 2,125 from the previous week's total of 1,964. There were 2,887 initial claims during the comparable week in 2013.
Oilfield service company’s year-over-year revenues climbed 3.7 percent.
Move is part of company-wide consolidation of residential call centers.
Contentious deposition renders LOGA chief too ill to testify. Here's why.
Proposal for the upcoming legislative session would set Louisiana’s minimum wage at $10 per hour, beginning in 2015, up from the federal rate of $7.25 per hour.
Patrick Kane II recalls his mother awakening him 50 years ago to say his dad’s plane was missing.
His health affected by a contentious deposition last week, the LOGA chief says he can't testify (court will reconvene March 10).
Chair of the energy committee, Mary Landrieu (discussing the urgency of Keystone with Canadian Foreign Minister John Baird) should get the respect she deserves in Louisiana.
A fundraiser co-chaired by former U.S. attorneys from both sides of the political aisle could signal the end of Mike Harson’s long grip on the D.A.’s office.
Former W. Home Furnishings owner Rene Ward faces seven years in prison.
Stuller’s Danny Clark focuses on satisfied customers and effective employees as he settles in as the company’s president/COO.
Sterling Ford-Lincoln of Opelousas ribbon cutting and the State of the Parish address
Increases in higher-end home sales say a lot about the health of the overall market.
Who joined whom or got promoted?
World-class athlete riding high in custom bike biz.
Setting the record straight on that February story in HuffPo
Liability waivers — what you need to know before you sign
A one-man operation, Brett Gauthier is bringing the oil and gas industry into the age of digital animation.
Planning a meeting with results
Local Ad Fed’s Copywriter of the Year and recently named creative director at Russo tapped for Boston Marathon project.
Forecasts for more frigid weather drive prices to highest level in four years.