KRG Saddles Pegasus, Universal Ensco in Acquisition

KRG Capital Partners has completed a control investment in Universal Ensco, Inc. and Pegasus International, Inc. Universal is a leading provider of engineering, project management, survey, and inspection services related to onshore gas, oil and liquid product transportation systems. Pegasus is also a rapidly growing provider of engineering and project management services to the oil and gas industry with a focus on subsea and offshore projects in both domestic (Gulf of Mexico) and international markets.

The Universal and Pegasus acquisitions represent the tenth platform company for KRG's $715 million Fund III and the thirty-first platform since KRG's inception. Management of both Universal and Pegasus will continue to be significant owners in the combined entity.

"Our objective is to build a unique, world-class company that provides its clients with a broad range of engineering and project management services related to both the onshore and offshore collection, transmission and processing of hydrocarbons and hydrocarbon-based products. In addition to the tremendous organic growth opportunities, we have recognized several potential acquisition candidates in the international and North America oil and gas engineering and project management space that would be highly complementary to the Company's current service offering," mentioned Chuck Hamilton, Managing Director of KRG.

Founded in 1966, Universal employs over 1,200 personnel and has completed over 3,500 pipeline projects for hundreds of clients in the oil and gas industry throughout North America as well as in China, the Middle East, the former Soviet Union, South America and Africa. Headquartered in Houston, Universal has locations in Tulsa, OK, West Monroe, LA, South Bend, IN, and Ankara, Turkey.

Jerry Mayfield, Universal President, stated, "We look forward to partnering with Pegasus as both companies operate with the primary goal of providing our customers with the highest quality work product. The combined resources will allow the Company to perform larger and more complex projects for our customers both in North America and internationally."

Pegasus has over 550 employees and has completed projects in over 50 countries including the Gulf of Mexico, North Sea, West Africa, Middle East and South East Asia regions. Headquartered in Houston, Pegasus has locations in Lafayette, LA, Salt Lake City, UT, London and Manchester, England and Aberdeen, Scotland.

"The combination of Pegasus' offshore capabilities with Universal's leading onshore position will enable the combined entity to service our customer's needs in ways not previously possible. In addition, KRG's capital support will enable us to increase our recruiting efforts to support our international growth strategy and service our customers as they expand geographically," stated Felipe Gonzalez, Pegasus President.

KRG's investment in Universal and Pegasus represents a compelling opportunity to participate in the growing oil and gas engineering industry. KRG plans to grow the Company both organically and through strategic acquisitions both in North America and internationally. Jerry Mayfield will remain President of Universal and will manage the combined Onshore business unit while Felipe Gonzalez will remain President of Pegasus and will manage the combined Offshore business unit.

Pegasus was represented in the transaction by Parks Paton Hoepfl & Brown while Universal was represented by Simons & Company International. KRG utilized Tudor, Pickering, Holt & Co. and Spears & Associates, Inc. during its diligence.


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