Investment Case Study: Global X-Ray & Testing

Company Information

Morgan City, Louisiana

  • Founded in 1964, Global X-Ray is a leading provider of non-destructive testing and evaluation solutions for major oil and gas companies in the Gulf of Mexico and other key domestic energy markets.
  • Family-owned business looking for a partner to accelerate growth and provide partial liquidity to estate.
  • Platte River invested as part of a majority recapitalization of Global X-Ray in 2010 and sold the company to Intertek Group plc (LSE: ITRK) in October 2013.

Investment Thesis

  • Industry: Increasing demand for testing and evaluation services due to a tightening regulatory environment as well as growth in deepwater offshore development and onshore pipeline infrastructure.
  • Opportunity: Invest in a leading family-owned company which had not invested in new capital, IT systems, expanding locations or additional service offerings.
  • Strategy: Partner with incumbent management team to provide capital, experience and guidance to meaningfully expand the company’s revenues and diversify end market exposure.

Platte River Value Add

  • Actively assisted management team in opening two new locations, adding service lines, introducing new information systems, recruiting a CFO and developing more robust operating and financial controls.
  • In three years, Global X-Ray was able to more than double its revenue and employment and triple its profitability.
View Company Portfolio Page