Kayne Anderson and Warburg Pincus agree $4bn WildFire sale
Magnolia Oil & Gas will buy Houston-based WildFire Energy in a deal PE Hub reported at about $4.06bn, with closing expected late in the third quarter.
By Marcus V. Thorne · Markets Editor
· 2 min read
Kayne Anderson and Warburg Pincus have agreed to sell WildFire Energy to Magnolia Oil & Gas Corporation for more than $4bn, PE Hub reported. The transaction values the Houston-based energy company at about $4.06bn and is expected to close late in the third quarter of this year, according to the report.
The deal transfers WildFire from its private equity backers to Magnolia, a listed oil and gas company, adding another large upstream energy transaction to a sector in which private capital has often built and consolidated assets before selling to strategic buyers.
PE Hub reported that Warburg Pincus, Kayne Anderson and WildFire’s management team formed the company in 2019. Anthony Bahr serves as WildFire’s chief executive, according to the report.
Private equity exit
The transaction represents an exit for Kayne Anderson and Warburg Pincus, two investment firms with exposure to energy and natural resources. In a sale of this kind, the sponsor owners agree to transfer their equity in the operating company to the acquirer, subject to closing conditions and the timetable set out by the parties.
PE Hub identified Magnolia Oil & Gas Corporation as the buyer. The report did not provide further detail in the available summary on the consideration mix, financing, regulatory approvals or any operational changes planned after completion.
The expected late-third-quarter closing date gives the parties a defined window to complete customary steps before ownership changes hands. Until completion, the agreement remains a pending transaction rather than a closed sale.
WildFire’s background
WildFire is based in Houston, a major centre for US oil and gas companies, service providers and energy-focused investors. PE Hub described the company as an energy business and said it was created through the 2019 partnership among Warburg Pincus, Kayne Anderson and the management team.
For Magnolia, the acquisition would bring WildFire under a corporate buyer rather than another financial sponsor. For the sellers, the reported valuation above $4bn marks a substantial monetisation of a platform formed roughly five years earlier.
This story draws on original reporting from PE Hub.
