Client Profile

PetroChem Inspection Services ("PetroChem" or the "Company"), headquartered in Houston, Texas is a leading provider of diversified inspection services for the petrochemical industry, gas and energy plants, and pipelines. PetroChem’s major competitive distinction is its ability to provide a comprehensive line of inspection services to its clients. The Company’s service lines have enabled PetroChem to become a "one-stop" shop for inspection services, which is advantageous as clients are increasingly consolidating vendors.

Situation

As Petrochem continued to grow the Company’s shareholders were faced with a decision as to whether to secure new capital to lay the foundation for long term growth initiatives or solicit potential buyers who could leverage the Company’s extensive field operations and inherent franchise value. The Company retained NatCity Investments and Chiron Financial to assist it in exploring both strategic alternatives given our extensive financial investor relationships and sales process experience and given Chiron’s experience in the oil services sector.

Solution

Together with Petrochem management and Chiron, NatCity identified a high priority universe of potential strategic acquirors and financial investors. Given the competitive nature of the industry, it was imperative that the process be conducted efficiently and confidentially so as to minimize any impact on long term customer relationships. NatCity worked with management and produced an offering memorandum detailing the broad inspection capablities of the Company and highlighting the Company’s core strength, its strong senior management and knowledgeable and stable field services employee base. NatCity selectively introduced the opportunity to the strategic buyers and financial investors and, after a healthy response and aggressive bidding, the Company selected TUV America as a strategic buyer. The transaction resulted in a significant return to the shareholders of Petrochem and positioned the company with a strategic partner with the resources and platform to facilitate long term growth and profitability.

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