Headwaters MB, now Capstone Partners, announced today that it advised NANA Development Corporation on the sale of Nana Oilfield Services (NOSI) to Saltchuk Resources. NOSI is a distributor of bulk fuels and lubricants to oil & gas and mining companies in Alaska.
Fuel storage capacity on the North Slope is an essential asset for companies operating in oil development and exploration, which ultimately drove a healthy valuation for NANA Development Corporation.
NOSI is uniquely positioned as one of two fuel distributors currently operating on Alaska’s North Slope. The Company also distributes fuel to the Red Dog mine, one of the world’s largest zinc deposits. NOSI will be a significant add on to Saltchuk’s current petroleum product distribution and marketing platform, North Star Petroleum (NSP). NSP is the largest petroleum product and lubricant distributor in Alaska, and NOSI’s fuel storage and distribution capabilities and relationships on the North Slope will be highly complementary to their business.
Burke Smith, Managing Director of Headwaters’ Transportation & Logistics group, added, “Under the best of circumstances, bulk fuel distribution is operationally intense, even more so in a rugged environment like the Dalton Highway and North Slope. Scale drives value in this business, a dynamic at play here, and more broadly in the ongoing industry consolidation.”