Control Buyout – Private Seller
Oil & Gas

IOS, based in Larose, LA, is a marine delivery (34% of revenues) and construction (66% of revenues) business serving the oil and gas platforms in the Gulf of Mexico (“GOM”) with a 49 vessel fleet. IOS services platforms in the “shallow Gulf,” defined as platforms operating in less than 400 ft of depth using vessels less than 200 ft in length. IOS is a niche player in this highly regulated and protected market. The shallow GOM is estimated to be serviced by 120 total vessels comparable to IOS’ marine fleet in a highly fragmented “mom-and-pop” market, providing IOS with the largest share of the shallow GOM capacity. IOS operates in a regulated market and has strong recurring revenue dynamics. IOS was acquired in partnership with management to take advantage of opportunities caused by disruption in the oil and gas markets, and to consolidate a fragmented industry.

Additionally, IOS’ implicit recurring revenue stream (a large off balance sheet asset) and powerful market position and a “misunderstood market” presented a low risk opportunity to build a powerful company in the shallow GOM.