Management Buyout of Blackstone Energy Services Inc.

Spara Capital Partners is pleased to announce its latest completed Transaction; the Management Buyout (“MBO”) of Blackstone Energy Services Inc. (“Blackstone”) with all-debt financing provided by TD and BDC, a transaction in which Spara Capital was exclusive advisor to Ryan Duffy, the Minority Shareholder.

Blackstone Energy Services Inc. is a Toronto, Ontario-based independent energy advisory and management firm servicing the, commercial and industrial (“C&I) and municipal, university, school and hospital (“MUSH”) sectors. The Company was founded and is managed by Ryan Duffy, a minority shareholder with Majority Partners that were not active in the business.

“My partners and I had a pretty tricky relationship and I felt that Spara`s reputation as ‘fighters for entrepreneurs’ was the approach they`d respond to, so they were the right choice for me. I wanted to make sure I approached what could easily have become a volatile situation appropriately.”
Ryan Duffy | Blackstone Energy Services Inc.

Spara led the Transaction working with Ryan to help him; assess his alternatives and select the most appropriate path; develop and implement an execution plan; negotiate on his behalf with the Majority Partners; structure and market the transaction to potential financial capital partners and lead due diligence and closing. Blackstone ultimately secured a financing package that included a senior cash flow facility from TD and subordinated debt from BDC.

“There was too much emotion and history on both sides. Every little issue became a proxy for our strained relationship. They fought hard for a win-win deal which sometimes meant they had to be firm in managing me. This deal would not have closed without Spara’s help.”
Ryan Duffy | Blackstone Energy Services Inc.

The Transaction closed in late 2012 and Blackstone Energy Services Inc. is now fully-owned and operated by Ryan Duffy. Ryan is confident his former partners are pleased with the purchase price and structure under which the transaction was completed. Blackstone’s new lenders have great confidence in the strength of his business plan and his Management team and their ability to execute and drive growth.