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The Workboat Edition ? Heavy LiftersDelta Rigging & Tools is a provider of a wide range of Industrial lifting, rigging and associated products, serving diverse markets from energy to transportation, maritime and offshore to name but a few. The company is on a mission to grow both organically and through acquisi- tions, a strategy clearly evident in the maritime and offshore sectors with its recent purchase of Morgan City Rentals, which is a leading provider of offshore rental equipment and rigging supply in the Gulf of Mexico.?One of our key strategic initiatives has been increasing our rental and rig-ging business, and to go deeper into the offshore oil and gas drilling and produc- tion markets,? said Hausman. He said that the Morgan City Rental deal was particularly attractive as the company, led by Joe Sanford, Jr., comes com- plete with a high quality, long-tenured management team. Similarly attractive was the breadth of the company?s prod- uct and service offering, as well as the fact that there was very little crossover among the company?s existing client base. ?It was pure growth for us,? said Hausman. While he declined to share the purchase price of Morgan City Rentals, he did say that it was the largest acquisi- tion to date for Delta Rigging & Tools?. ?Once we began discussions, it was clear that combining with a large and growing operation like Morgan City Rentals the transaction would be transformational for both companies.Strong Roots Hausman is relatively new at the helm of Delta Rigging & Tools, having joined the company in December 2011 as Presi- dent and assuming the role of CEO in January 2013. But he is hardly an indus-try neophyte, as prior to this he spent 31 years with Southwest Wire Rope, serv- ing as President and CEO of that com-pany for more than 20 years.?I actually retired in 2010, but re-entered the business simply because of the unique opportunity with Delta Rig-ging & Tools. Delta Rigging & Tools is an acquisition business within the Aus- tin Ventures portfolio,? Hausman said. ?Delta Rigging & Tools is a unique hy- brid within the industry because we offer both rental and rigging. ?With the acqui- sition of Morgan City Rentals a larger percentage of our revenues are now geared toward the rental market.?Looking at the domestic heavy lift busi-ness today Hausman sees plentiful small, privately owned companies; many fam-ily owned and perhaps with questions regarding leadership succession. Quite simply, many companies in this realm are seeking to monetize the business. But he said that a small percentage of the deals presented Þ t the company?s crite- ria, as they seek to expand the depth and breadth of their markets and customer base, not simply bolt on revenue. In step with the industry?s progression, changes are inherent to the business of heavy lift itself. ?The business is very different to- day from the point of view of scale, as the lifts are getting larger,? Hausman said. ?Plus, requirements from a mate-rial point of view are becoming more stringent and regulatory compliance is a much bigger part of the process.?Promising Future ?I see a positive uptrend in the Gulf of Mexico for 2014,? Hausman said, ?but we were expecting more of an uptrend in the second half of this year. I honestly think this is simply due to project lag: Pick Me Up Pick Me UpMitch Hausman, President & CEO of Delta Rig-ging & Tools, Inc., discusses his company?s strat- egy to expand its core business through acquisition, including insights on its largest ever: the purchase this summer of Morgan City Rentals.By Greg Trauthwein 52 Maritime Reporter & Engineering News ? SEPTEMBER 2013 MR #9 (50-57).indd 52MR #9 (50-57).indd 529/3/2013 12:25:35 PM9/3/2013 12:25:35 PM
