Cypress Energy Partners LP (NYSE: CELP) has acquired a 51% controlling interest in Brown Integrity LLC, which owns Pipeline Services International LLC.
Brown provides hydrostatic testing, and the company's co-founder, Charlie Brown, is among the sellers retaining the remaining 49% interest.
The accretive all-cash $11.2 million acquisition includes a multi-year earn-out, and Cypress will have the right to acquire the remaining 49% interest in the future.
Cypress Energy Partners provides saltwater disposal and other water and environmental services to US onshore oil and natural gas producers and trucking companies in North Dakota and west Texas. Cypress also provides independent pipeline inspection and integrity services to producers and pipeline companies throughout the US and Canada.