JX3 Construction Services LLC, a leading provider of specialized roustabout services and light manufacturing for the Oil & Gas industry, has been successfully sold to an individual buyer with industry experience. The transaction, facilitated by Shane Hammond of IAG, marks a significant achievement in securing a buyer with the necessary expertise to take over the business. JX3 provides crew labor, support skid fabrication, and portable pumping units for the Oil & Gas sector, making it an essential service provider in the Victoria, Texas, area.
A Long Road to Closing
JX3 Construction Services was founded in 2014 by Joe Pieprzyca to support a single large client. Over the years, the company expanded its service offerings from basic labor to full site construction, becoming a critical partner for its main client. However, this client concentration—where 95% of JX3’s revenue came from a single source—posed a challenge during the sales process.
The company first went to market in May 2023, drawing interest from over 100 potential buyers before identifying the right candidate. The ideal buyer needed deep knowledge of the Oil & Gas industry to navigate the complexities of the business, given its high dependency on one major client.
Negotiations and Securing the Right Buyer
In April 2023, the team received a Letter of Intent (LOI) from a potential buyer who had a background in oil construction and a successful career in the fencing business. This individual seemed like a great fit, and two preferred lenders had pre-qualified the buyer. However, the buyer’s broker steered them in another direction, delaying the process.
After five months of negotiations and adjustments, the deal was finally closed, with the buyer meeting the full asking price of $2.25 million. Pieprzyca, eager to see the business continue thriving, is committed to helping the new owner transition smoothly before retiring.
A New Chapter for JX3 Construction Services
With the sale now complete, JX3 is set to continue its role as a key player in the Oil & Gas sector under its new ownership. The experience and industry knowledge of the buyer ensure that the company will maintain its strong partnership with its core client while potentially expanding its service offerings.
This successful transaction highlights the importance of finding the right buyer for businesses with unique challenges, like client concentration, and underscores IAG’s expertise in facilitating deals in the Oil & Gas industry.
