Press release, February 21, 2008
HMT MERGES WITH PASADENA TANK CORPORATION TO STRENGTHEN GULF COAST PRESENCE
HOUSTON, TX, February 21, 2008 -- HMT Inc. today announced that it has entered into a definitive agreement to merge with Pasadena Tank Corporation, a leading provider of engineering, fabrication, construction and maintenance services for aboveground storage tanks (ASTs) in the petrochemical industry. Pasadena Tank is headquartered in Houston, TX. Terms of the transaction were not disclosed.
Founded in 1982 by Robert Block III, Pasadena Tank Corporation is a highly regarded leader in the Gulf Coast AST market as a result of its outstanding reputation for safety, quality and customer service. Robert Block III and the senior management team of Pasadena Tank have agreed to remain in their current positions and will continue to operate Pasadena Tank as a division of HMT.
"The merger with Pasadena Tank Corporation will significantly improve HMT's operational effectiveness in new tank construction, allow us to better serve our customers, and contribute to the achievement of our long term strategic growth plan," said Millard H. (Mil) Jones, Jr., President and CEO of HMT. "We believe that the Gulf Coast petroleum industry is vital to our nation's energy infrastructure and that over the long term there will be a continued need for tank construction and repair services in this region."
"This is an important and strategic transaction for our company," said Robert Block III, owner and President of Pasadena Tank Corporation. "We have spent nearly three decades building Pasadena Tank. By joining forces with HMT, we will benefit from operational synergies, significantly increase our resources and service capabilities, and better meet the demands of our customers in the Gulf Coast and other domestic and international locations."
HMT is a portfolio company of Berkshire Partners, which acquired the business in May, 2007. Kevin Callaghan, Managing Director for Berkshire Partners said, "The combined company will have two of the most respected management teams in the industry working with a broader platform of services and products to better serve their customers. We were very pleased to support HMT in completing this transaction, which represents a significant step in the implementation of HMT's growth strategy."
Debt financing for the transaction is being led by affiliates of Société Générale Corporate & Investment Banking, Oaktree Capital Management, and Northwestern Mutual Capital. Navigant Capital Advisors, LLC acted as Pasadena Tank's financial advisor in the transaction. Legal counsel for HMT was provided by Weil, Gotshal & Manges LLP. Pasadena Tank's legal counsel was Andrews Kurth LLP.
About Pasadena Tank Corporation
Pasadena Tank Corporation is recognized as a leading provider of aboveground storage tanks for the petroleum and petrochemical industries in the Gulf Coast region, one of the largest concentrations of aboveground storage tanks in the world. For more than 25 years, Pasadena Tank has provided new tank construction and a full complement of repair and maintenance services to major oil companies and petroleum storage terminal operations worldwide.
Pasadena Tank's full service complex in Houston provides engineering, procurement, shop fabrication, blasting and painting, construction services, project management and administration, and maintains a strong commitment to safety, quality and on time delivery. For additional information regarding Pasadena Tank Corporation please visit www.ptctanks.com.
About HMT Inc.
HMT is an innovative solutions provider to the petroleum and petrochemical aboveground storage tank marketplace. HMT operates a worldwide network of field offices and manufacturing locations from headquarters just outside of Houston, Texas.
HMT provides a complete suite of products and services to all facets of aboveground storage tanks through tank inspection, maintenance and repair, fabrication, engineering and design, coating and lining, calibration, new tank construction and turnkey services. HMT tank products meet or exceed the requirements for Emission Controls under the US EPA, API and European IPPC / BREF regulations.
For more information regarding HMT's long line of innovative solutions and for details of your local HMT office, please visit us at www.hmttank.com.