Strike Enters Asset Purchase Agreement with Affiliates of American Industrial Partners

Strike, LLC (“Strike” or “the Company”) today announced that it has entered into an asset purchase agreement with affiliates of American Industrial Partners, (“AIP”), the Company’s largest debtholder, pursuant to which AIP will acquire substantially all of the Company’s assets.

To facilitate the transaction process, the Company today filed voluntary petitions for a court-supervised restructuring under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas. This action is expected to provide for a quick and orderly sale of the Company’s assets under Section 363 of the Bankruptcy Code, with AIP serving as the “stalking horse bidder” in a court-supervised auction and sale process. Accordingly, the proposed transaction with AIP is subject to higher or otherwise better offers, Court approval and other customary conditions.

In connection with the proposed sale transaction, Strike has received a commitment for approximately $29 million in debtor-in-possession (“DIP”) financing from AIP. Upon Court approval, this new financing, together with cash generated from the Company’s ongoing operations, is expected to support the business throughout the sale process. The Company expects to operate in the ordinary course throughout the process and remains focused on serving customers and working with suppliers as normal.

“The sale and financing agreements with AIP mark an important step forward in our efforts to strengthen our business and position the Company to continue meeting and exceeding the needs of our customers well into the future,” said Chuck Davison, Jr., Chief Executive Officer. “Since I joined Strike in July, the Board and management team have taken a fresh look at the business to evaluate how best to build on our brands’ strong position in the marketplace, improve our financial position and set Strike on a path for future success. Based on this review, we have determined that initiating a court-supervised sale process is the optimal path forward for our business and is in the best interest of all our stakeholders.”

Davison continued, “AIP’s interest in Strike is a testament to the value they see in the services we provide our customers and the strength of our talented team. We are as dedicated as ever to operating safely and providing our customers with the same level of quality and service that they have come to expect. We thank our customers for their support and appreciate the continued cooperation of our partners, who play a key role in helping us bring our services to market. We continue to go the extra mile for our customers every day, and we appreciate our associates’ hard work and commitment to Strike.”

The Company has filed a number of customary motions seeking court authorization to continue to support its operations during the court-supervised sale process, including the continued payment of employee wages and benefits. The Company intends to pay vendors, suppliers and other trade creditors in full under normal terms for goods and services provided during the bankruptcy case. Strike expects to receive approval for these requests.

Additional information regarding the Company’s court-supervised sale process is available at www.StrikeRestructuring.com. Court filings and other information related to the proceedings are available on a separate website administrated by the Company’s claims agent, Epiq, at https://dm.epiq11.com/StrikeLLC, by calling Epiq toll-free at (855) 675-2860 (or +1 (503) 520-4488 for calls originating outside of the U.S.), or by sending an email to [email protected].

White & Case LLP is serving as Strike’s legal counsel, and Opportune LLP is serving as financial and restructuring advisor.

About Strike

Strike is a full-service pipeline, facilities, and energy infrastructure solutions provider. Headquartered in The Woodlands, Texas, Strike partners closely with clients all across North America, safely and successfully delivering a full range of integrated engineering, construction, maintenance, integrity, and specialty services that span the entire oil and gas life cycle. For more information, visit www.strikeusa.com.

About American Industrial Partners

American Industrial Partners is an operationally oriented private equity firm that makes control investments in industrial businesses serving domestic and global markets. The firm has deep roots in the industrial economy, and has been active in private equity investing since 1989. To date, American Industrial Partners has completed more than 100 acquisition transactions, and currently has more than $7 billion of assets under management on behalf of leading pension, endowment, and financial institutions.

For more information on AIP, visit www.americanindustrial.com.

Forward-Looking Statements

Statements in this press release that are not statements of historical or current fact constitute forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could impact the Company’s objectives and plans or cause the actual results of the Company to differ significantly from the historical results or from any future results expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include, but are not limited to, risks and uncertainties relating to the Chapter 11 process, competition in the industry, general domestic or international economic conditions, and changes in laws or regulations. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms “believes,” “belief,” “expects,” “intends,” “anticipates,” “plans,” or similar terms to be uncertain and forward-looking.

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