ACON, Carlyle/Riverstone Sell Oil Exploration Co For 4X Return
April 12, 2005 -- ACON Investments and Carlyle/Riverstone Holdings have sold their stake in oil and gas exploration and production company Mariner Energy, netting the firms a 4X return on their invested capital.
The firms received $363 million from the private placement of 31,452,500 shares of Mariner. Another $45 million was used to repay Mariner debt.
ACON and Carlyle/Riverstone acquired Mariner in March 2004 in a transaction valued at $271.1 million. According to a source, the firms committed approximately $100 million of equity to the deal. The firms acquired Mariner from an affiliate of bankrupt Enron Corp., with ACON leading the deal and bringing in Carlyle/Riverstone, which ended up investing more in the transaction.
Mariner Energy has principal operations in the Gulf of Mexico and the Permian Basin in West Texas.
Friedman, Billings, Ramsey & Co. acted as the placement agent for the shares, which were purchased by institutional buyers and accredited investors. No single entity now owns a controlling stake in Mariner.
ACON Investments is a Washington, D.C.-based private equity firm and an affiliate of Texas Pacific Group. The firm manages approximately $725 million in capital. Yesterday, the firm completed its acquisition of Brazilian supermarket company GBarbosa.
The Carlyle Riverstone/Global Energy and Power Fund II, which made the investment in Mariner, is a $1.1 billion equity fund managed by Riverstone Holdings and the Carlyle Group. The fund invests in global industry and energy companies.
Contact:
Jonathan Ginns, ACON Investments, 202-454-1105
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