Delta Rigging & Tools Acquires Offshore Rental Specialist Morgan City Rentals

June 10, 2013

Delta Rigging & Tools, one of the largest providers of lifting and rigging products and related services in the United States, has acquired Morgan City Rentals, a Morgan City, La.-based provider of offshore equipment rental and rigging supply in the Gulf of Mexico. Founded in 1970, Morgan City Rentals, which also has branches in Golden Meadow and Broussard, La., specializes in the rental of equipment such as skid-mounted diesel welders and air compressors, pumps, air hoists, hydro-test pumps, and boring drills, providing wire rope, rigging hardware and supplies, sling fabrication and compliance load testing to the offshore oil and gas industry.

Combined with Delta Rigging & Tools’ existing operations in Broussard and Houma, La., the acquisition of Morgan City Rentals establishes Delta as the leading offshore rental and rigging company in the Louisiana Gulf Coast market.

“One of our key strategic initiatives has been increasing our Louisiana rental and rigging business, and to go deeper into the offshore oil and gas drilling and production markets,” said Mitch Hausman, president and CEO of Delta Rigging & Tools. “We were very familiar with the outstanding reputation of Morgan City Rentals. Once we began discussions, it was clear that combining with a growing operation like Morgan City Rentals was the best strategic move for both companies, and the best way to serve our existing and new customers with expanded rigging and rental services.”

“We’ve been on the fringes of rental to the offshore market, but haven’t done much with that market,” Delta Rigging & Tools chairman Kevin Rodgers told RER. “These guys really know how to do it. After the wells are drilled, MCR rents the lifts, air tuggers and items that take the wire ropes up and down as well as underwater cutting tools and specialty tools that divers use.

“This is really a game-changer for Delta. If you look at the top 10 customers of Morgan City Rentals, their average tenure with MCR is 26 years.”

 “I am very pleased to have found a partner like Delta Rigging & Tools that provides such a compelling fit for our employees and customers,” said Joe Sanford Jr., president and owner of Morgan City Rentals, who will remain with Delta. “We are excited to join forces with the talented management team of Delta Rigging & Tools. Both Morgan City Rentals and Delta Rigging & Tools are well-known companies managed by executives with decades of experience in the rental equipment and rigging business. We now have the nation’s most extensive fleet of pipe slings, hoists, winches, compressors, pumps and related rigging equipment.”

In partnership with Austin Ventures, Delta Rigging & Tools, founded in 2004, has acquired and integrated a number of regional market leaders to create a platform for further growth initiatives through strategic acquisitions and geographic expansion through Greenfield startups.

“Delta Rigging & Tools will continue to seek additional acquisition opportunities of companies offering sales and rental of rigging, lifting and specialty products serving energy and industrial customers around the country.”

Morgan City Rentals was advised by SWS Group/Southwest Securities Inc.

Based in Pearland, Texas, Delta Rigging & Tools is No. 77 on the RER 100.