Watson Valve Services, Inc.

Client Profile

Headquartered in Houston, Texas, Watson Valve Services, Inc. is a manufacturer of both proprietary and non-propriety ball valves. The Company mainly services the mining, chemical and petro-chemical industries, providing customers with autoclave operations and those operating in settings characterized by fluid products under severe pressures or in a highly corrosive environment. In addition, the Company provides maintenance, repair and refurbishment services to both its own and other manufacturers’ valves returning the valves to their original specifications or modified to improve valve performance & life cycle.

Situation

In January 2020, a catastrophic gas explosion at the plant of its exclusive manufacturing vendor abruptly shuttered Watson Valves’ primary manufacturing channel and severely disrupted its capabilities to fulfill its existing project contracts and open customer orders. Because of the significant disruption to its business, Watson Valve filed a voluntary petition for Chapter 11 reorganization with the U.S. Bankruptcy Court of the Southern District of Texas in February 2020.

Solution

SSG and Statesman were retained as the investment bankers to assist in identifying possible buyers in order to facilitate a sale of the assets of Watson Valve. The process attracted interest from several strategic parties. Mogas Industries, Inc.’s offer ultimately was deemed the highest and best offer after a robust auction. SSG’s and Statesman’s industry knowledge and experience running efficient special situations sale processes enabled a transaction to be consummated. The sale closed in July 2020.