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Parallel Investment Partners sells JetStar

March 2007

Client(s) Parallel Investment Partners

Jones Day advised Parallel Investment Partners in the $125 million sale of its portfolio company JetStar Consolidated Holdings Inc. to Basic Energy Services, Inc. (NYSE:BAS). Basic paid approximately $87 million for all outstanding shares of capital stock of JetStar in a combination of cash and shares of Basic common stock and repaid all of JetStar's approximately $38 million of outstanding debt.

JetStar, headquartered in Dallas, provides well and drill site pumping services to oil and gas producers in Texas, Oklahoma, and Kansas. Basic, based in Midland, Texas, is an oil and gas well site services company with a market capitalization of approximately $925 million. Basic has 4,100 employees and operations in Texas, Louisiana, Oklahoma, New Mexico, and the Rocky Mountain states. The combined operations of the two companies will create a service fleet of approximately 95,000 horsepower in the same geographic areas.

This transaction is a classic example of a private equity buy-and-build transaction. Parallel created JetStar in May 2005 by combining two local pumping services businesses, JetStar Energy Services and Rio Pumping. Parallel brought in an operating partner to serve as CEO, upgraded the sales, marketing, and financial infrastructure of the business, and expanded service offerings and market coverage by acquiring Acid Services LLC in February 2006. In addition to advising Parallel on the JetStar exit, the Firm also advised on the original acquisitions of JetStar and Rio Pumping, as well as the add-on of Acid Services.

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