Castle Harlan’s Acquisition of Exterran’s Production Equipment Manufacturing Assets


Arnold & Porter advised private equity investment firm Castle Harlan, Inc. (Castle Harlan) in its definitive agreement to acquire the production equipment manufacturing assets of Exterran Corporation (Exterran). The sale is expected to close in the summer of 2018.

Castle Harlan, Inc., the New York private equity investment firm, announced today it had through an affiliate signed a definitive agreement to acquire the North American production equipment manufacturing assets of Exterran Corporation (NYSE: EXTN).

The newly established company will be named “Titan Production Equipment,” and overnight will be a market leader in the design, engineering and manufacturing of oil and gas production equipment used to separate, process and treat hydrocarbon streams at the wellhead, gathering and processing stages of production. The business specializes in custom and made-to-order products, including two- and three-phase separators, as well as glycol regeneration dehydrators. The sale is expected to close in the summer of 2018.

Former and current managers of the assets will be investors in Titan Production Equipment and operate the new business going forward. Chris Werner, who was a former officer of Exterran and formerly SVP of Global Operations & CEO of Exterran Italy, will become Chief Executive Officer of Titan Production Equipment when the transaction closes.

The acquisition includes Exterran’s 210,000 square foot manufacturing facility in Columbus, Texas, which has the capacity to manufacture over 4,000 units per year and is recognized as one of the premier facilities in the industry with a fit-for-purpose layout for high volume, complex manufacturing. The acquisition also includes Exterran’s entire portfolio of production equipment engineering drawings and designs that is broadly considered to be the industry standard for production equipment. As part of the transaction, Titan Production Equipment will become Exterran’s preferred supplier of production equipment throughout the U.S. and Canada.

Titan Production Equipment plans to continue employing the highly skilled workforce that has historically been associated with Exterran’s production equipment business, and plans to immediately ramp up production at the Columbus facility to address high customer demand.

Arnold & Porter advised private equity investment firm Castle Harlan, Inc. with a team including Stephen Koval (Picture) and Amita Gopinath.

Involved fees earner: Stephen Koval – Arnold & Porter Kaye Scholer LLP; Amita Gopinath – Arnold & Porter Kaye Scholer LLP;

Law Firms: Arnold & Porter Kaye Scholer LLP;

Clients: Castle Harlan, Inc.;

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Author: Ambrogio Visconti