September 19, 2022
Kalispell, MT – Rental Equipment Investment Corp. (“REIC”), a portfolio company of Kinderhook Industries, LLC (“Kinderhook”), announced today the acquisition of Blackout Energy Services, Inc., LLC (“Blackout Energy” or “BOE”). Headquartered in Williston, North Dakota, Blackout Energy is a provider of specialty rental equipment, specializing in flameless heaters and light towers. Blackout Energy represents REIC’s third add-on acquisition under Kinderhook’s ownership and the Company’s 15th since inception. Financial terms of the transaction were not disclosed.
“The Blackout Energy acquisition continues the growth of our specialty rental division, REIC Specialty, LLC (“REIC Specialty”)” said Kevin Fitzgerald, Chief Executive Officer of REIC. “Blackout Energy is an excellent company with strong management that will allow us to expand our flameless heaters and light tower product offerings in the growing area of North Dakota and its surrounding states.”
Dennis Haller, Chief Executive Officer of REIC Specialty, added, “We are very excited to welcome the Blackout Energy team to REIC’s special rental division. BOE has been a key customer for our JetHeat flameless heater product and expanded the awareness of the product throughout the Bakken market.”
“I am very excited to join the REIC Specialty team. Combining our team with the resources of REIC and Kinderhook will allow us to grow the business to better service our customers the way we have been striving for,” said Danny Morton, Owner of Blackout Energy.
“The acquisition of Blackout Energy is consistent with REIC’s strategy for growing its specialty rental business”, said Paul Cifelli, Managing Director at Kinderhook. “Following the combination, REIC will now operate 14 standalone specialty locations.”
Financing for the transaction was provided by a PNC Capital Markets bank syndicate, which included Flagstar Bank, BancAlliance, Banc Hapoalim, First Merchants Bank, MUFG Union Bank and Stifel Bank & Trust.