Gravity Divests Water Midstream Business to Delek Logistics
Deal News | Dec 12, 2024 | Clearlake Capital
Gravity Oilfield Services, a company supported by Clearlake Capital, has agreed to divest its Gravity Water Midstream division to Delek Logistics. This transaction signifies a strategic scale-up opportunity in the Midland Basin for Delek Logistics. Rob Rice, CEO of Gravity, praised their employees and Clearlake for their contributions. While selling its water assets, Gravity retains its power infrastructure business. Clearlake acknowledges the partnership since 2017 and the organic growth achieved in the Midland and Williston Basins. Piper Sandler & Co and Vinson & Elkins LLP were financial and legal advisors respectively for Gravity in this deal.
Sectors
- Energy Infrastructure
- Private Equity
- Logistics
Geography
- United States – The operations and transaction involve key U.S. locations, specifically the Midland Basin in Texas and the Williston Basin in North Dakota.
Industry
- Energy Infrastructure – The article discusses Gravity's focus on water midstream solutions and power generation in the oil and natural gas sector.
- Private Equity – Clearlake Capital's involvement as a private equity investor in Gravity signifies this sector's role in financing and strategic planning.
- Logistics – Delek Logistics, a key participant, is focused on logistics solutions in the energy sector, expanding its water midstream operations.
Financials
- Not Disclosed – The financial details of the transaction were not disclosed.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Gravity Oilfield Services Inc. | Target Company | Company | A provider of energy infrastructure services, focusing on water midstream and power solutions. |
| Clearlake Capital Group, L.P. | Private Equity Investor | Company | An investment firm supporting Gravity since 2017. |
| Delek Logistics Partners, LP | Bidding Company | Company | Purchaser of Gravity's water midstream business to extend its logistics operations. |
| Piper Sandler & Co | Financial Advisor | Company | Financial advisor for Gravity in the divestment transaction. |
| Vinson & Elkins LLP | Legal Advisor | Company | Provided legal counsel to Gravity during the transaction. |