Please review a selection of our completed deals below. Click on tombstone for details on that engagement.
Price Not Disclosed
SOUTHWEST MEDICAL + DENTAL
Southwest Medical & Dental, Inc.
Southwest Medical & Dental, Inc. located in Dallas, Texas is a leading provider of office design and equipment sales and service to the general dental market in the region and the oral surgery market nationally. The company was formed in 1989 by Henry Krybus and Scott Perry. The company grew in size and capabilities over the next thirty years with a strong reputation for consistently providing quality and service.
The firm’s co-founders were looking to find a partner to continue to grow the business and provide opportunity for their loyal staff to also grow. Scott and Henry engaged The Dillard Anderson Group to explore options. A strategic analysis of their business was conducted a marketing plan was developed to achieve the owners’ goals. Through the marketing process a suitable equity partner was found in Dental Health Products, Inc. (DHPI).
Southwest Medical & Dental will continue to operate as a standalone brand and a division of DHPI. DHPI provides Southwest the scale and operational power for growth in dentistry. While Southwest provides DHPI with oral surgery capabilities that they did not possess before. Scott and Henry will continue as a part of the key management team of DHPI, heading North Texas operations for general dentistry and national operations for oral surgery.
Price Not Disclosed
EXCEL STIMULATION, LLC
Excel Stimulation, LLC (Excel) is a diversified oilfield service company providing acid, cementing, frac/stimulaton and other services. The Company is owned by Bill Littrell and is based in Cleo Spings, Oklahoma. Excel serves production and exploration customers on a 24/7 basis in the Anadarko Basin and Woodford shale plays of Oklahoma.
Select assets of Excel Stimulation, LLC were sold to Rock Hard Cementing in February 2018. Rock Hard Cementing is an oilfield cementing firm operating out of Glenrock, Wyoming.
Mr. Littrell was referred to The Dillard Anderson Group to provide M&A advisory services to help in the disposition of certain assets of the company.
Price Not Disclosed
CASCI ORNAMENTAL PLASTER
Casci Ornamental Plaster was founded in Dallas, TX in 1930 by Mr. Casci, who immigrated to the United States from Italy. The business was acquired by one of his long-time employees, Mr. Royce Renfro in 1970. Mr. Renfro carried on the business, further building on the reputation of the company established by Mr. Casci.
The company is the Southwest’s premier provider of custom ornamental plaster and cast concrete for new and renovated estate homes and commercial properties. Their work can be found in a long list of well-known estate homes and buildings throughout the region.
Mr. Renfro was referred to The Dillard Anderson Group to provide M&A advisory services to help in the closing of his business to a private Dallas ownership group.
Price Not Disclosed
CTI SURFACE DRILLING
CTI Surface Drilling assets were sold to Nueve Drilling Company, Inc. in August 2014.
CTI Energy Services, LLC (CTI) operated two business units: CTI Surface Drilling and CTI Rat Hole. The company is owned by Bob Iverson and Charlie Thompson. The company is based in Ft. Worth, Texas and serves customers on a 24/7 basis in the Barnett, Eagle Ford and Permian Basin plays and will continue its growth in rat hole services.
The Atlas-Copco RD-20 surface drilling fleet was state of the art with all support equipment, tested in the field and ready for immediate deployment.
Nueve Drilling Company is a land drilling firm operating out of Albany, Texas.
Price Not Disclosed
OTI OPERATING, INC.
OTI Operating, Inc. (“OTI”), located in Woodward, Oklahoma, was formed in 2005 through the merger of Rick Wilson Inspection and AMAC Oilfield Pipe Inspections. The owners Rick Wilson and Steve Wilson had previously worked together at Oilfield Tubular Inspections in the ‘70’s and ‘80’s. The company and its principals have an exceptional reputation in the oilfield for quality and dependability. OTI serves operators in the Woodford, Granite Wash and Mississippian plays.
Mr. Wilson and Mr. Randolph were enjoying great success and looking at additional growth opportunities. Given their past experience the owners knew they needed an equity partner to help finance their next phase of growth and allow them to gain some financial security though merger. The owners engaged The Dillard Anderson Group (DAG) to explore options for their company.
DAG performed an analysis of both financial and strategic buyers, and presented pertinent information to a select few who were interested in pursuing a transaction. IOS Holdings, Inc. and Calvert Street Capital Partners provided the most attractive valuation and best strategic fit. IOS retained all the OTI employees, and has plans for further expanding the business. Mr. Randolph and Mr. Wilson realized their goal of financial security and partnership for continued growth as a part owner of IOS.
L&L BACKHOE, INC. AND L&L DOZER, LLC
L&L Backhoe, Inc. and L&L Dozer, LLC (collectively known as L&L) were incorporated in 1979 by Elaine and Larry Gartrell. The company provides equipment, personnel, and expertise for the preparation of drill sites, lease roads and oil tank batteries. Based in Woodward, Oklahoma the company serves the exploration and production companies working the Granite Wash, Woodford and Mississippian shale plays.
After operating the company for over 30 years, the owners were looking for an exit plan that would allow them to transition into retirement and allow for the continued employment of their loyal and skilled workforce of 105 employees.
The Gatrell’s entrusted DAG to help them with their exit plan by finding a buyer for L&L. DAG developed a list of potential buyers from the private equity community and from strategic businesses. After discussions and site visits with various interested groups, DAG negotiated a transaction with ROC Service Company, a holding of Turnbridge Capital, LLC. ROC is based in Bridgeport, Texas and is a provider of well site construction, roustabout support and general well hook-up and commissioning services to oil and natural gas companies. ROC is one of the leading service providers in its segment in the Barnett shale and Marcellus shale regions, and has a growing presence in the Eagle Ford and Fayetteville shale regions.
The acquisition by ROC provided a major leap into the active Mississippian shale play with an experienced workforce. Larry Gatrell and his staff continued in their management roles.
The transaction was a combination of cash, seller note and earn out, with a total transaction value in excess of $15 million.
CP WELL TESTING, LLC
CP Well Testing, LLC was founded in 2008 by Carl Robertson. The company specializes in frac flow back services. Based in Elk City, Oklahoma, the company services all the active exploration and production plays in the Texas Panhandle, Oklahoma and Southern Kansas. Larry Harrison heads the operations from Elk City, in the heart of the Granite Wash shale play. The company furnishes all the flow back valves, trees, flow lines and tanks. CP transported rental equipment and rigs with in-house employees and utilized contract operators for field observation to monitor flow back.
The current owners: Leslie Harrison, Street Robertson, Don Selmon and Carl Robertson engaged DAG to find a buyer for the company. DAG identified a set of industry and private equity candidates to purchase CP. After discussions and site meetings with interested parties, DAG negotiated a transaction with Hastings Equity Partners, LLC. Hastings is a private equity firm with offices in Boston and Houston.
Leslie Harrison continues on at CP to head up current operations and build on equipment and staff to expand its’ rental services.
The transaction was a combination of cash and stock, with a total transaction value in excess of $22 million.
HIGH PLAINS SERVICES, INC.
High Plains Services, Inc. was incorporated in 1979 by Mr. L. C. Price. The company provides inspection of tubulars (casing, tubing, drill pipe and collars) and hydraulic fracture flow back services. High Plains is based in Elk City, Oklahoma and covers all the active exploration and production companies in the Texas Panhandle, Oklahoma and Southern Kansas.
After operating the company for over 30 years and with the loss of his wife, Mr. Price was looking for an exit plan that would allow him to transition into a lesser role and allow for the ongoing continued employment of his staff.
Upon the recommendation of a friend and previous DAG client, Mr. Price engaged DAG. DAG developed a list of potential buyers from the industry and private equity community. After discussions and site inspections with various interested parties, DAG negotiated a transaction with Red Oak Water Transfer Services, a Rockwater Company. Red Oak is based in Fort Worth, Texas, and specializes in water transfer.
Red Oak immediately expanded the water transportation business with high-speed connection and big-inch water lines and pumps into High Plains operations. Red Oak furnished capital to further expand previous operations under the continued direction of L.C.
The transaction was a combination of cash, stock and bonus agreements, with an aggregate value in excess of $30 million.
CRUDE PROCESSING, INC.
Crude Processing, Inc. provides a number of services for its customers in the Williston Basin of North Dakota and Montana. Its core services include recovery of junk oil and frac water heating. The Company was founded in 1980, and was owned by Mr. Jim Davenport and Mr. Dale Branson.
The owners were familar with other previous clients of DAG in the region. They called and explained that they would like to consider a sale. Mr. Davenport was interested in retirement, and Mr. Branson was interested in continuing to run the business, but wanted to monetize his equity position. After discussion with previous DAG clients, the owners elected to engage DAG for a sale.
DAG defined a group of private equity and industry candidates and pursued all that we felt would have an interest in CPI. After discussion with a number of interested parties, DAG negotiated a transaction with CCS Midstream, Inc. CCS is a privately owned Canadian company, and had an objective of entering the Williston Basin to expand its U.S. presence.
All the CPI employees were retained by CCS. Mr. Dale Branson now serves as division manager and Mr. Jim Davenport serves the Company on a consulting basis.
TEAM SNUBBING SERVICES, INC.
SALE OF TEAM SNUBBING SERVICES, INC. TO BASIC ENERGY SERVICES, INC. for $7,000,000 December 2009
Team Snubbing Services, Inc. provides snubbing services for natural gas production companies in the Fayetteville Shale play of central Arkansas. The Company was founded in 2006 by Mr. Rick Parker, and is headquartered in Conway, Arkansas. The company has adapted the use of a short stroke snubbing tool, which is used primarily for completion of well sections along the lateral line of the well.
Team Snubbing was referred to DAG by a previous client located in the same geographical area. DAG met with Mr. Parker and his partner, Mr. Robert Gunn, in September 2009. After explanation of the sales process, DAG was selected to handle the company sale.
DAG defined a group of strategic and financial candidates, and pursued a select number. After several discussions and one on-site meeting, DAG negotiated a transaction with Basic Energy Services (NYSE:BAS). The transaction was closed in December 2009, just 90 days after engagement.
All employees were retained by Basic, and Mr. Jim Reherman, Manager of Team, was appointed Basic’s Regional Manager.
Price Not Disclosed
MITCHELL’S OIL FIELD SERVICE, INC
Mitchell’s Oil Field Service, Inc. (MOFS) is the Williston Basin’s premiere oilfield construction and lease maintenance company service its customers in western North Dakota and eastern Montana. The Company was founded in 1977 by Mr. Everett Mitchell, and is headquartered in Sidney, Montana. Mr. Mitchell had the foresight to allow employee ownership of the Company, and formed an employee stock ownership program (ESOP) to attract and retain employees. At the time of the sale, the ESOP owned almost half the equity of MOFS.
Mr. Mitchell was referred to the Dillard Anderson Group by a previous client. With a fiduciary obligation to his ESOP shareholders, Mr. Mitchell knew he must be able to demonstrate to those shareholders that the best possible value would be received. After DAG explained the process, Mr. Mitchell elected to engage. DAG approached a select group of prospective and strategic buyers. After an extensive marketing period, DAG located Stone Arch Capital, a private equity firm based in Minneapolis, Minnesota. Stone Arch was developing a platform for power infrastructure management, and MOFS fit all their criteria.
Through a number of negotiating sessions, a deal was struck for the purchase of 85% of the stock of MOFS. Mr. Mitchell retains the 15% balance, and continues to manage the Company. Mr. Mitchell and the ESOP shareholders were pleased with the value delivered by DAG.
NORTH STAR WELL SERVICES, INC.
North Star Well Services, Inc. is a well service company which operates workover rigs, swab units and kill trucks. The Company is located in Woodward, Oklahoma. It was founded in 1999 by Mr. Greg Jeter, Mr. Larry Pingry and Mr. Mike Mitchell. North Star operates its equipment fleet in western Oklahoma and the Texas Panhandle.
North Star was referred to the Dillard Anderson Group by a previous Woodward based client. DAG met with Mssrs. Jeter and Pingry in early summer of 2007, explained our sales process and talked about possible valuation levels. The owners decided to hire DAGE to investigate a possible sale of the Company. The objective of the owners was to generate liquidity, and to partner with a strategic or financial partner to continue to growth of the Company.
DAG confidentially presented North Star to a number of strategic and financial buyers. The primary marketing period covered a flat period in overall oilfield growth. This created a situation where the strategic players were interested in buying, but were not willing to pay a premium for the Company.
DAG located Hancock Park Associates, a Los Angeles and Houston based private equity firm. One of HPA’s principals is a previous client of DAG. HPA presented a proposal for purchase of the Company, and, after much negotiation, the transaction was closed in July, 2008. All owners agreed to continue to manage and grow the Company.
BOOMER WELL SERVICE TO HANCOCK PARK ASSOCIATES
Boomer Well Service is a well service company which operates workover rigs in Western Oklahoma and the Texas Panhandle. The Company is headquartered in Woodward, OK. It was founded in 1999 by Mr. Leon Ramirez, a veteran of 20+ years in the well service industry.
Boomer was referred to the Dillard Anderson Group by an acquaintance in the industry. DAG met with Mr. Ramirez to understand his objectives in considering a sale. After extensive discussion of our process and the marketplace, Mr. Ramirez decided to engage with DAG for a possible sale or merger. The objectives of Mr. Ramirez were to create liquidity and to partner with a strategic or financial partner to continue the growth of Boomer.
DAG presented Boomer to a select number of strategic and financial buyers. The primary marketing period covered a flat period in overall oilfield growth. Therefore, while a number of strategic buyers made proposals for a purchase, valuations were not premium.
DAG located Hancock park Associates, a Los Angeles and Houston based private equity firm. One of HPA’s principles is a previous client of CAGE. HPA presented a proposal for the purchase of Boomer, and, after much negotiation, the transaction was closed July 1, 2008. Mr. Ramirez agreed to continue to manage the Company on behalf of the new ownership.
EXPLORECO PIPE, LTD. BY ROSBOTTOM INTERESTS AND EXPLORECO INTERNATIONAL, LLC
Exploreco Pipe, Ltd., Houston, Texas, is a major provider of casing and tubing for oil and gas wells. The Company was founded by brothers Don and Barry Milner in 1983. Over the years the Milners developed relationships with both domestic and foreign steel mills, including mills in India, Russia and China. Exploreco sells its products primarily to independent oil and gas producers.
The Milners were known to DAG from prior association in the oil service industry. The brothers called on DAG to discuss the feasibility of creating liquidity through a sale or recapitalization. After a review of the market and prospective strategic and financial buyers, DAG was engaged for a sale or recapitalization of the Company. The spectacular growth of Exploreco had required the Company to invest larger and larger sums in pipe inventory. The Milners’ objectives were to generate liquidity, eliminate personal bank debt guarantees and to continue to manage and grow Exploreco.
DAG presented the Company to a select group of strategic buyers for a potential sale, and a second group of financial buyers for a possible recapitalization (“recap”) of the Company. Extensive interest was expressed by both groups. The valuation and structure offered by Rosbottom Interests, Dallas, Texas, was determined by the owners to be the most attractive. The Milner brothers accomplished all their objects through the recap, continue to manage the Company, and have a significant ownership position of the new company, Exploreco International, LLC.
WILDHORSE SERVICES, INC. TO BASIC ENERGY SERVICES, INC.
Wildhorse Services, Inc., Woodward, Oklahoma, is a fishing and rental tool service provider, covering western Oklahoma and the Texas Panhandle. The Company was founded in 2002 by Mr. Greg Wines and Mr. Steve Wickware. Mr. Wines, an industry veteran of over 35 years, made a personal decision to retire. Mr. Wickware’s career objective was to continue working, but was interested in monetizing his equity in Wildhorse. DAG was referred to Wildhorse by an oilfield industry acquaintance. Mr. Wines talked to a number of our previous clients, and, based on their feedback, elected to engage DAG for a sale.
DAG investigated possible strategic and financial buyers, and obtained multiple offers. The best overall valuation was delivered by Basic Energy Services, Inc. The two primary shareholders realized their liquidity objectives. In addition, Mr. Wines has fully retired and Mr. Wickward has been made manager of the new Basic Energy division. All Wildhorse employees agreed to continue with Basic.
OILFIELD BEARING INDUSTRIES, INC. TO FORUM OILFIELD TECHNOLOGIES
Oilfield Bearing Industries, Houston, Texas, is the world’s leading distributor of aftermarket bearings for the unique equipment components, drawworks, mud pumps, rotary tables, hook/blocks, etc. for oil and gas drilling rigs. OBI serves its worldwide market through its offices in Houston, Odessa, Edmonton, Aberdeen and Dubai. The Company was founded in 1994 by Mr. Owen Joyner. A major private equity shareholder made the decision to realize the investment they made in OBI in 1997. Mr. Joyner, as CEO and a major shareholder, was given the responsibility of selecting a financial advisor to handle the sale. Mr. Joyner was referred to DAG by his attorney, who had worked with DAG on a previous transaction. After initial discussions and a check of references, the owners of OBI appointed DAG to assist in the sale.
DAG approached, on a confidential basis, both strategic and financial buyers who we felt would have an interest in OBI. At the top of this list was Forum Oilfield Technologies, Inc., a platform company of SCF Partners. DAG was very familiar with the growth strategy of Forum, as we had consummated a transaction with them in late 2005. The best overall valuation was offered by Forum, and the transaction was closed May 1, 2007. The owners realized their liquidity objectives, and Mr. Joyner and his management team remain in place with Forum.
FALCON WIRELINE, LLC TO GRAY WIRELINE SERVICES, INC.
Falcon Wireline, LLC, headquartered in Woodward, Oklahoma, provides electric wireline service for its customers in western Oklahoma and the Texas Panhandle. Falcon was formed in 2001 by Mr. Manley Porter and a group of industry investors. Mr. Porter and the investment group determined that timing may be good to pursue the sale of the Company, and initiated discussions with friends in the private equity industry as to who might assist them. An acquaintance of Dillard Anderson Group (DAG) within one of the firms recommended DAG. After initial discussions and a check of references from previous clients, the owners of Falcon appointed DAG to assist in the sale.
DAG performed an analysis of the potential strategic and financial buyers. The best overall valuation was delivered by Gray Wireline Services, Inc., a relatively new platform of Centre Southwest Partners, Dallas, Texas. The owner group realized its liquidity objective, and the management and all employees of Falcon were pleased to accept ongoing employment with the new owners.
Price Not Disclosed
ANDERSON WATER WELL SERVICES, LTD. TO COMPLETE PRODUCTION SERVICES, INC.
Anderson Water Well Services, LTD. (AWW) provides water well drilling services for exploration and production companies in the Barnett Shale region of North Texas. These water wells provide the most economical source of water for the high volume fracs that have enabled this non conventional gas play to flourish. AWW, then a commercial water driller, was bought in 2003 by Jerry Peek and Jim Rowan, two oil and gas contract drilling industry veterans.
DAG knew Mr. Peek and Mr. Rowan well, as we represented them in the sale of Peek & Rowan, Inc., an oil and gas drilling contractor, in 1998. Because of this previous success, the owners contacted DAG and engaged for the sale of their second company. DAG performed an analysis of both strategic and financial buyers, and approached a select number of candidates. One of the candidates was Complete Production Services, Inc. (NYSE:CPX). AWW was a perfect strategic fit with Complete’s existing water well drilling operation in the area. Complete delivered a premium valuation comprised of cash and stock. Mr. Peek and Mr. Rowan satisfied their liquidity of objectives, and both now manage the combined water well drilling operations.
Price Not Disclosed
HYDROSTATIC TUBING TESTERS, INC. TO BASIC ENERGY SERVICES
Hydro Static Tubing Testers, Inc. (“HSTT”), located in Williston, North Dakota, has been the Williston Basin’s leading provider of high pressure tubing and casing testing for 24 years. The owner, Mr. Steve Schubert, built and ran a company with an excellent reputation for high quality and timely service throughout the Basin.
Mr. Schubert, after a highly successful career in the oilfield, developed an interest in retirement. He talked to a previous client of DAG (also based in Williston) about our service. After meeting with DAG, Mr. Schubert engaged our firm for the sale of HSTT.
DAG performed an analysis of both financial and strategic buyers, and presented pertinent information to a select few who were interested in pursuing a transaction. Basic Energy Services, Inc. (NYSE:BAS), Midland, Texas, provided the most attractive valuation and best strategic fit. Basic retained all the HSTT employees, and has plans for further expanding the business. Mr. Schubert realized his goal of financial liquidity and is now preparing for his retirement.
ARKOMA MACHINE & FISHING TOOLS, INC. TO COMPLETE PRODUCTION SERVICES, INC.
Arkoma Machine & Fishing Tools, Inc. provides rental tools and fishing services to the active exploration and development companies in the Arkoma Basin of eastern Oklahoma and western Arkansas. Founded in the mid sixties, the Company is headquartered in Ft. Smith, Arkansas. The owner and president of Arkoma, Mr. Mike Bearden, developed a professional operating staff that is known as the team to call for specialty rentals and fishing services.
Mr. Bearden was referred to The Dillard Anderson Group (DAG) by a previous client who also operated in the Arkoma Basin. Mr. Bearden talked to a number of other satisfied previous clients, and, based on their reports, elected to engage DAG for a sale. DAG performed an analysis of both strategic and financial buyers, and approached a select number of candidates. One of the strategic candidates was Complete Production Services, Inc. (NYSE:CPX). Complete delivered a premium valuation which was all cash for the assets of Arkoma. Mr. Bearden satisfied his objective of financial liquidity, and now serves as area general manager for this new division of Complete.
ALPHA OIL TOOLS TO WEATHERFORD U.S., L.P.
Alpha Oil Tools is a downhole, wireline service tool company located in Fort Worth, Texas. Alpha was a closely held family business in operation for 25 years. Their market is primarily in the drillable bridge plug and cement retainer applications selling to wireline service companies as well as some packer and tool firms.
In late 2005, Alpha entered into discussions with DAG regarding selling the business. They shortly thereafter contracted with the Dillard Anderson Group to represent the Company in this transaction. Mr. Max Dillard came to the plant to look at the operation and give an overview of the paths and options to pursue. Alpha subsequently entered into a relationship with the Dillard Anderson Group and proceeded with their plan.
The Company was sold on May 1st, 2006 to Weatherford. Jim Smith of Alpha says: “We were very excited to complete the transaction and are very pleased with the professional advise and plan carried out by Dillard Anderson to see this day come. It was a very effective and personal relationship with both Max Dillard and Sam Anderson giving us their counsel and expertise that got the job done for us. We accomplished our goal and it was because of their help that we did so.”
Price Not Disclosed
OZARK MUD & CHEMICAL, INC. TO ANCHOR DRILLING FLUIDS USA, INC.
Ozark Mud & Chemical, Inc., Van Buren, Arkansas, was founded in 1987. The Company provides drilling fluids and rental services to the active exploration and production companies in the Arkoma Basin of eastern Oklahoma and western Arkansas. The owner and president of Ozark, Mr. Terry Davis, is a mud service industry veteran, and had developed “the” independent mud service company for the Basin.
DAG was referred to Mr. Davis by a previous client. Having recently executed another transaction in the Arkoma, we were familiar with the level of drilling activity and the promise of the developing Fayetteville Shale play. After talking to a number of previous DAG clients, Mr. Davis elected to engage us for the sale of the Company. DAG performed an analysis of active strategic and private equity buyers. With input from Mr. Davis, we narrowed the list and confidentially approached each prospect. After discussion and meetings with several interested parties, Anchor Drilling Fluids USA, Inc. emerged as the successful acquirer. Anchor is the largest privately owned drilling fluids company in the U.S., and now operates out of four major regions.
DAG delivered a premium valuation (which was not publicly disclosed). Also, Mr. Davis has agreed to be a regional manager for Anchor, and to assist the Company in its continuing exciting growth.
Price Not Disclosed
TRAIL BLAZER, INC. TO STALLION OILFIELD SERVICES, LTD.
Trail Blazer, Inc. is an oilfield rental company which provides its customers drill site surface equipment such as fork lifts, generators, pumps, trash trailers and water line pipe. It is headquartered in Elk City, Oklahoma, and has facilities in Chickasha and Canadian, Oklahoma. The Company provides rental service in Oklahoma and the Texas Panhandle. The founder and owner of Trail Blazer, Mr. Carl Farni, built the leading surface rental company in Oklahoma over a 23 year period.
Mr. Farni contacted The Dillard Anderson Group (DAG) after talking to industry sources about who might assist him in achieving his financial goals. DAG met with Mr. Farni, and developed an understanding of his operation and customer base. DAG, through our knowledge of the oilfield service industry of private equity markets, identified a number of strategic and financial acquisition candidates. One of the acquisition candidates was Stallion Oilfield Services, LTD, Houston, Texas. DAG was familiar with Stallion’s strategies, having worked with them on a transaction several months earlier. Trail Blazer provided a perfect fit for Stallion’s objective of expanding operations in the Oklahoma market.
DAG delivered a premium valuation (which was not publicly disclosed). In addition, Mr. Farni and his entire staff all agreed to continue operating and expanding the Company on behalf of Stallion.
Price Not Disclosed
ADVANCED MANUFACTURING TECHNOLOGY, INC. TO FORUM OILFIELD SERVICES, INC. (a platform co. of SCF Partners)
Advance Manufacturing Technology, Inc. (AMT) is a manufacturer of oil service equipment. The Company was founded by David and Bob Tadlock in the mid 80’s, primarily to service Tadlock Pipe and Rental, Inc. AMT gradually developed its own proprietary product line including wireline blowout, preventers, wireline lubricators and grease injection units. Customers include both service providers and rental tool companies.
The Dillard Anderson Group (DAG) was referred to Bob and David Tadlock by a previous client. DAG met with the Tadlocks in 2002, and, based on market conditions, advised the owners to delay any sale efforts until the oilfield service market improved. In late 2004, as the market improved, DAG was engaged as the exclusive advisor for a sale of AMT.
DAG identified a member of private equity and strategic candidates which would have an interest in AMT. Of a number on interested firms, Forum Oilfield Technologies, Inc., a platform company of SCF Partners, Inc., emerged as the acquiring company. The purchase price (which was not publicly disclosed) was comprised of cash and stock. Mr. Brian Leeth, general manager of AMT, agreed to continue managing AMT for Forum. The Tadlocks achieved their goal of liquidity, and, they are pleased to be shareholders in Forum Oilfield Technologies.
Price Not Disclosed
OILWELL FRACTURING SERVICES, INC. TO BASIC ENERGY SERVICES, INC.
Oilwell Fracturing Services, Inc. (OFS), is a pressure pumping company which provides acidizing and fracturing services to its E&P customer base in Oklahoma and southern Kansas. OFS was incorporated in 1981 and established its headquarters in Cushing, Oklahoma. The co-founder, Mr. Gail Dilley, along with the other two owner/managers, Mr. Steve Dilly and Mrs. Cristy Foster, built the leading independent pressure pumping company in Oklahoma over a twenty five year period.
The Dillard Anderson Group (DAG) was referred to OFS by an attorney who was familiar with our expertise. DAG called on the owners of OFS, and developed an understanding of their personal and financial objectives. DAG provided our list of references, and, based on the feedback received from our previous clients, the owners elected to engage for a sale. DAG, through our knowledge of the oilfield service industry and private equity markets, approached a selected number of strategic and financial acquisition candidates. One of these was Basic Energy Services, Inc., Midland, Texas. Basic provides a diverse suite of services to the oil and gas industry, including a growing pressure pumping division. The value of the all cash purchase price was not publicly disclosed.
Mr. Gail Dilley serves as a consultant to the company until he transitions into retirement. Mr. Steve Dilley continues as division operations manager and Mrs. Foster continues as the division finance and administrative manager.
Price Not Disclosed
GL TRUCKING & RENTAL, INC. TO STALLION OIL FIELD SERVICES, LTD.
GL Trucking & Rental, Inc. is an oilfield service company which provides trucking services, accommodation units, and rental equipment to oil and gas operators, as well as service companies who are active in the Williston Basin of North Dakota and eastern Montana. GL was founded in 1979 by Lawrence and Gerrie Lippert.
The Dillard Anderson Group (“DAG”) was referred to GL by an active client who operates in the same region. DAG called on Mr. and Mrs. Lippert, and quickly obtained an understanding of GL’s business and the financial goals of the owners. The Lipperts checked the numerous references provided, and, based on feedback from previous clients, elected to engage for a sale.
DAG identified a specific group of strategic and private equity candidates. An important candidate was Stallion Oilfield Services, Inc. of Houston. DAG was familiar with the Stallion business model, and felt that GL was a good fit in their niche. Other candidates were carefully screened, but Stallion emerged with the best overall valuation. The purchase price for the assets of GL was a combination of cash and a note. The price was not publicly disclosed. Mr. and Mrs. Lippert will continue in a transitionary role before settling into their goal of retirement.
ALEXANDER DRILLING INC. TO NABORS INDUSTRIES LTD
Alexander Drilling, Inc. is an oil and gas drilling contractor which operates eight medium depth drilling rigs in the Arkoma Basin of eastern Oklahoma and western Arkansas. Founded in 1968, the company is headquartered near Fort Smith, Arkansas. Alexander is managed by Mr. Rick Alexander, who has worked for the company since 1972. The company was owned by Mr. Alexander and his family.
The Dillard Anderson Group (“DAG”) became aware of the significant increase in drilling activity in the Arkoma Basin, particularly in the Fayetteville Shale. DAG contacted Mr. Alexander, and discussed the current market for well established contract drilling companies. Mr. Alexander talked to a number of previous DAG clients, and, based on the positive feedback from those clients, elected to engage DAG for the sale of the company.
DAG undertook an extensive search of both strategic buyers and private equity firms that we felt would have an interest. We then narrowed the list through discussion with the candidates, and held site visits with three potential buyers. Nabors Industries, LTD. (NYSE: NBR) delivered a premium valuation, paid in cash, for the assets of Alexander Drilling. In addition, Mr. Alexander accepted a position with Nabors to oversee the current 27 rig fleet in the region.
ELENBURG EXPLORATION TO CAPSTAR an (Oil States Intl Subsidiary)
Elenburg Exploration, Inc. is an oil and gas drilling company which operates seven highly mobile and efficient drilling rigs in the Rocky Mountain region of the United States. Founded in 1966, the Company is headquartered in Casper, Wyoming and has operational facilities in Billings and Havre, Montana. Elenburg is managed – and was partially owned – by Mr. Nich Wendland and Mr. Gary Elenburg, whose combined tenure with the Company exceeds 50 years. The A.R. Dillard Group, of Wichita Falls, Texas, was the majority owner.
The Dillard Anderson Group was familiar with the unique design of the rigs which Elenburg operates, having served a previous client, Capstar Drilling, which operates a similar design. DAG called on Elenburg, knowing that the demand for drilling services in the region were extremely strong. Mr. Wendland and Mr. Elenburg talked to a number of our previous clients and, based on that feedback, elected to engage us for the sale.
DAG, through its knowledge of the drilling industry and private equity markets, approached a selected number of strategic and financial candidates. One of these was Oil States International, Inc. (NYSE: OIS), the parent company of Capstar Drilling. Due, in part, to the financial success OIS had enjoyed with Capstar, combined with a strategic desire to expand their Rocky Mountain exposure, Oil States offered a premium value for Elenburg.
Mr. Wendland and Mr. Elenburg achieved their liquidity objectives, and agreed to continue in senior management positions with Capstar.
Price Not Disclosed
PENKOTA WIRELINE SERVICES TO WEDGE OIL & GAS SERVICES (a WEDGE Group Subsidiary)
Penkota Wireline Services (“Penkota”) was established in 1981, by Mr. Mark Gjovig and Mr. Arlan Arnson. Penkota, headquartered in Williston, North Dakota, provides wireline trucks, operators, logging engineers and the specialized tools for logging, perforating and recovery of pipe from oil and gas wells. The Company’s customer base includes the active exploration and development companies in the Williston Basin.
The Dillard Anderson Group (“DAG”) contacted the owners of Penkota, in part due to the dramatic increase in E&P activity in their region. The owners talked to a number of previous DAG clients and, based on those discussions, engaged DAG for a sale of the Company.
DAG performed an analysis of active strategic and financial buyers and, with input from the two owners, agreed on a select number of prospective buyers. After discussion with several interested buyers, WEDGE Group, a Houston based private equity firm, emerged as the successful acquirer.
DAG delivered a premium valuation (which was not publicly disclosed). In addition, Mr. Gjovig and Mr. Arnson agreed to continue running and expanding the Company on behalf of WEDGE Group.
Price Not Disclosed
WILDCAT SERVICES TO VARCO L.P.
Wildcat Services, L.P. was founded in 1999 in Cypress, Texas, by Mr. Wayne Prejean. The core business of Wildcat is a patented rental tool – an automatic driller – which is installed on oil and gas drilling rigs. The tool assists the operator of the drilling rig to maximize rate of penetration through precise monitoring of weight on bit, changes in mud pump pressure and other diagnostics. The tool is used in conjunction with downhole mud motors for both vertical and horizontal drilling.
Mr. Prejean was known to DAG through mutual prior association in the directional drilling business. DAG and Mr. Prejean analyzed the participants in the oil service market and eventually agreed that the most synergistic candidate for purchase was the M-D Totco subsidiary of Varco, L.P. (NYSE: VRC). Varco was approached initially with a strategy of attempting to consummate a transaction at a premium valuation. If this valuation could not be obtained, the second part of the strategy was to approach other strategic players in the drilling instrumentation market.
Varco quickly recognized the value of Wildcat, and the synergistic fit with M-D Totco, and delivered a premium valuation (price was not disclosed). Mr. Prejean accepted a senior management position with M-D Totco and the other members of the Wildcat management team remain in their current positions.
SALMON DRILLING CO. & GAS DRILLING FLUIDS TO COMPLETE ENERGY SERVICES INC.
Salmon Drilling Company was established in 1988 by Mr. Tracy Salmon. Headquartered in Jacksboro, Texas, the company provides contract drilling services to its customers in the active Barnett Shale area of the Ft. Worth basin. In addition to the drilling company, Mr. Salmon operates G&S Drilling Fluids, providing the customer base with drilling mud service.
DAG was introduced to Salmon by a previous DAG client, and we were subsequently engaged to sell both companies. We undertook an extensive search of likely candidates, with Complete Energy Services, Inc. emerging as the successful acquirer.
Complete is a new platform company of SCF Partners, Houston, Texas. DAG delivered an attractive valuation comprised of cash, a note and stock in the acquiring company. Mr. Salmon accepted employment with Complete and will assume the additional responsibility of managing one of Complete’s other contract drilling subsidiaries.
CANTU LEASE TO FLINT ENERGY SERVICES
Cantu Lease, Inc. was founded in Mission, Texas in 1980 by Mr. Dustin Roach and Mr. Gary Hollowell. The company serves the South Texas oilfield as a construction contractor, building and maintaining pipelines, gas gathering systems, compressor stations, drilling sites and access roads. The company’s customer base includes most of the major operators in South Texas.
DAG was introduced to Mr. Roach and Mr. Hollowell by a previous DAG client, and we were subsequently engaged for the sale of Cantu. After an extensive search of likely candidates, Flint Energy Services, LTD of Edmonton, Alberta, Canada emerged as the successful acquirer. DAG delivered an attractive valuation, and a tax efficient structure of cash, notes and Flint stock. Flint (FES on the Toronto exchange) had a strategy of geographically expanding their highly successful oilfield construction business. Cantu, as the leading contractor in South Texas, satisfied this strategy. After a brief transition period, Mr. Hollowell will devote full time to other business interests, and Mr. Roach will continue to manage the business as a major division of Flint.
TRINITY VALLEY WELDING SERVICES TO TRI-POINT ENERGY SERVICES
Trinity Valley Welding and Machine, Inc. (“TVI”), in Liberty, Texas, was formed by Mr. Pete Willoughby and Mr. Greg Forticq in 1992.
The Company services the oilfield through refurbishing the primary components of drilling rigs – drawworks, mud pumps, rotary tables and hook/blocks. TVI also maintains a fleet of service trucks which it dispatches to the field for on-site repairs. Its customer base includes the major U.S. based drilling contractors.
The owners of TVI contacted DAG and discussed the possibility of a sale. DAG was retained, and scrutinized our potential acquirers. TVI was then sold to Tri-Point Energy Services, Inc. at an attractive valuation.
Tri-Point Energy is a focused group of service companies headed by Mr. Stuart Tillman. It continues to pursue complementary add-on acquisitions.
Mr. Willoughby continues to serve as President of both TVI and Tri-Point Energy.
MIDCOAST DIESEL SERVICES TO TRI-POINT ENERGY SERVICES
MidCoast Diesel Service, Inc. (“MCDS”) of Victoria, Texas, was founded in 1962 by Mr. Curtis Reece. The Company serves the oilfield by providing new and refurbished diesel engines, transmissions and mud pumps. The Company’s customer base includes the major oil and gas drilling contractors and workover companies.
MCDS was referred to DAG by a previous client. Mr. Reece and his wife Frances were approaching retirement age and, based on the referral, engaged DAG for the sale of the Company.
DAG conducted a thorough search for possible suitors, and finally negotiated the sale of the Company to Tri-Point Energy Services, Inc. of Houston. Tri-Point Energy, headed by Mr. Stuart Tillman, simultaneously acquired two other companies, TNC Energy Services & Trinity Valley Welding and Machine, Inc.
Mr. Reece continues with MidCoast/Tri-Point for a one year transition period, and will then have the opportunity to realize his retirement objective.
OILFIELD-ELECTRIC MARINE BY ROWAN COMPANIES
Oilfield-Electric-Marine, Inc. (“OEM”) of Houston, Texas, and its affiliate, Industrial Logic Systems, Inc., located in Brea, California, are engaged in the manufacture and service of electrical power and switching equipment for the oilfield, dredging and marine industries.
OEM’s owner and Chief Executive, Mr. Kevin Williams, was approached by Rowan Companies, Inc., through their manufacturing subsidiary, LeTourneau, Inc. Rowan was interested in supplementing its capabilities in drilling rig construction, particularly with the AC electric motors and drives of OEM.
Due to the dramatic growth that OEM had undergone over the past year, Rowan engaged DAG to recommend a fair and reasonable purchase price for the Company. DAG spent considerable time with the management of OEM, and reviewed historical and projected performance. Financial models were prepared and reviewed with Rowan management. Finally, a formal recommendation was submitted to Rowan and the transaction was successfully completed, at a value and structure that was fair to both parties.
MOUNTAIN AIR DRILLING SERVICE CO. LLP TO ALLIS CHALMERS
Mountain Air Drilling Service Company, Grand Junction, CO, is the market leader in providing compressed air for air drilling operations in the San Juan Basin of New Mexico, Colorado and Utah. The Company was founded in 1975 and operated profitably from that point as a family business owned by Rod and Linda Huskey.
In preparation for retirement, the Huskey’s retained The Dillard Anderson Group to assist in the sale of the Company, and to structure a transaction to meet their retirement objectives. DAG tapped its proprietary database to determine likely acquirers for this highly specialized oil and gas drilling services company. After sorting through a number of interested parties, DAG successfully negotiated the sale of Mountain Air to Allis Chalmers Corporation (NASD:ACLM). Mountain Air was sold at a very attractive multiple, and the Huskey’s were retained through a transition period to new management.
Allis Chalmers Corporation, through the leadership of its Chairman, Mr. Mickey Hidayatallah, continues to pursue add-on acquisitions in the oilfield service and rental areas.
POINT TO POINT COMMUNICATIONS TO DYCOM INDUSTRIES
Point to Point Communications, Inc., Lafayette, LA, is a diversified telecommunications company that provides consulting, engineering, installation and testing of integrated communications networks nationwide.
The owners of Point to Point were referred by a previous client, and engaged The Dillard Anderson Group in 2000 to pursue the sale of the Company. The Company had enjoyed dramatic growth through the telecom boom of the late ’90’s. The owners decided to pursue some personal liquidity and merge with a larger participant in the telecom construction market.
After an intense search for suitable acquirers, The Dillard Anderson Group negotiated Point to Point’s sale to Dycom, Inc. (NYSE:DY), an industry leader in telecom construction services. Each of the owners continued employment with the Company, and enjoy the liquidity they had originally pursued. The Dillard Anderson Group delivered its clients a premium price that recognized the synergistic merits of the combination.
DEDICATED SERVICES INC. TO NOBLE INTERNATIONAL
Dedicated Services, Inc., (DSI) in Houston, Texas was formed in 1995 by Mr. Steve Savant. The Company provided a turnkey delivery service for automobile dealers. This out-source function grew dramatically, as it provided a cost effective alternative for the (non-core) delivery function of automobile parts which are sold by the dealers. DSI also sold franchises, nation-wide, and collected franchise fees and royalties from the franchise owners.
Mr. Savant and the other owners of DSI were referred to DAG by its attorneys. After DAG was engaged, we performed a search for suitable acquirer candidates. After several interested candidates were identified, the sale of DSI was eventually consummated by Noble International, Inc. (NYSE:NOBL). Noble is a major supplier of out-sourced service in the manufacture of automobiles. In addition, Noble was interested in expanding its new logistics division. DAG delivered the shareholders of DSI a very attractive valuation for a relatively young, but successful company.
ELLIS WILLIAMS COMPANY TO LeTOURNEAU INC. (a Rowan subsidiary)
The Ellis Williams Company, Inc. (EWCO), Houston, Texas, is a manufacturer of premium reciprocating mud pumps, which are used in oilfield drilling and workover operations. The founder, Mr. Ellis Williams, is a pioneer in mud pump design and manufacture. EWCO was owned by Michael and Shirley Williams, and Bob and Ken Gibbs. The owners engaged DAG to find a buyer with two objectives in mind – shareholder liquidity and the ability to expand the EWCO pump line. After an extensive search, DAG negotiated the sale of EWCO to Rowan Companies, Inc. (NYSE:RDC) subsidiary LeTourneau, Inc. EWCO was sold at an attractive multiple which was well received by each shareholder. Management stayed in place through a transition period.
The Company has been renamed LEWCO and has greatly expanded in its operations under the Rowan/LeTourneau ownership. Mr. Ellis Williams still serves as a consultant to LEWCO and realized one of his career dreams when the first EWCO 3,000 horsepower pump was completed in early 2002.
RANGER DIRECTIONAL TO QUANTA SERVICES
Ranger Directional, Inc., Lafayette, LA, is a horizontal directional drilling contractor engaged in constructing bore holes for the placement of pipelines, telecom and other cables underneath rivers, roadways or obstructions. Ranger was founded in 1993 by Mr. Vernon Harris and Mr. Lyle Girouard. The Company’s revenue grew dramatically in the late ’90’s with the growth of the telecommunications construction activity in the U.S.
Ranger engaged The Dillard Anderson Group to assist the Company in finding a strategic partner to enable it to continue its growth. A second objective was to provide liquidity for the owners, as most of their net worth was the Company itself. DAG quickly determined that the telecom construction industry was the most aggressive group of candidates for an acquisition. After a thorough search of this industry, DAG negotiated the sale of Ranger to Quanta Services, Inc. (NYSE:PWR).
Quanta is a nationwide leader in infrastructure construction and has aggressively pursued acquisitions of companies engaged in telecom construction. Ranger shareholders received an attractive valuation compromised of cash and Quanta stock.
PEEK & ROWAN INC. TO OIL STATES INTERNATIONAL, INC.
Peek & Rowan, Inc., Wooster, Ohio, is an oil and gas drilling contractor which operates three Walker-Neer Apache drilling rigs, primarily in eastern Ohio. After operating the Company profitably for over ten years, they were interested in generating liquidity and in relocating back to their ‘roots’ in Texas.
The owners, Jerry Peek and Jim Rowan, engaged DAG to pursue the sale of the Company. Having been successful in selling Capstar (which ran the same design rigs in West Texas), DAG approached Oil States International Inc. through their subsidiary, Hydraulic Well Control, Inc. Peek & Rowan proved to be a perfect ‘add on’ acquisition for OSI, as it provided geographic expansion for the operation of the Walker-Neer line of drilling rigs.
The sale was completed with Oil States International at a very attractive multiple of earnings. Mr. Peek and Mr. Rowan stayed through a transition period, then realized their objective of retirement.
UPDIKE BROTHERS INC. TO KEY ENERGY GROUP INC.
Updike Brothers, Inc., Newcastle, Wyoming, is an oilfield workover and service rig contractor which has operated successfully in the Rocky Mountain region since 1937. The company operates 25 rigs, along with crews, which are utilized to do completions, cleanouts and workovers for existing oil and gas wells. The company was majority owned and managed by members of the Updike family. The president, Mr. David ‘Bud’ Updike, retained DAG for the sale of the company.
The company was somewhat unique, in that the ownership structure was an Employee Stock Ownership Plan (ESOP). The Updike family owners had a fiduciary obligation to the ESOP shareholders to insure that the best possible value was to be realized in a sale.
DAG negotiated the sale of Updike Brothers, Inc. to Key Energy Group, Inc. (NYSE:KEG), one of largest and most successful service contractors in the U.S. The Updike family and the ESOP shareholders were pleased with the attractive valuation delivered by The Dillard Anderson Group.
DIAMOND PRODUCTS INTERNATIONAL INC. TO SCF PARTNERS
Diamond Products International, Inc. (“DPI”) in Houston, Texas, was founded in 1994 through the acquisition of DB Stratabit from Dresser Industries.
The Company designs and manufactures natural and synthetic (polycrystalline diamond compound, or ‘PDC’) drill bits. DPI’s premier product is the patented bi-center PDC bit, the “Speed Reamer”. The President (and shareholder) of DPI, Mr. Bob Iversen, had spent most of his career with the Hughes Bits division of Baker Hughes, Inc., with responsibility for the PDC bit line.
DPI was approached in 1997 by SCF Partners, the Houston-based investment group, regarding a potential acquisition. Mr. Iversen had known Max Dillard for many years, as Mr. Dillard’s drilling company, Drillers, Inc., had been a major customer of Hughes. DAG was retained and within three months an acquisition was consummated at a level which was substantially higher than earlier valuations. DAG helped create a competitive atmosphere which resulted in the higher valuation. DPI continues to flourish as an SCF Partners Company.
CAPSTAR DRILLING TO SCF PARTNERS
Capstar Drilling is an oil and gas drilling contractor, operating primarily in the Permian Basin of West Texas. The Company was founded and managed by Mr. Jim Brazeal and Mr. Jerry Coleman. It operated ten medium depth drilling rigs of the Walker-Neer Apache design. This design is unique in that it incorporates a top drive system and automatic pipe racking, and requires only a two man drill crew.
DAG was retained to pursue the sale of Capstar. The objectives of the two owners were liquidity and retirement. After an extensive search, DAG negotiated the sale of Capstar to SCF Partners, in Houston, at an attractive valuation.
SCF Partners later structured Capstar as a subsidiary of a newly formed public company, Oil States International, Inc. (NYSE:OIS). Each of the owners stayed for a transition period, and then realized their objective of retirement.
PEP INC. AND NATIONAL OILWELL INC.
PEP, Inc. was founded in 1981 by Mr. Bill Hext and Mr. B.D. Berryhill. The company, located in Odessa, Texas, manufactures mud pump replacement parts. The Company sells its product line both domestically and internationally through agents in Canada, South America, Europe and the Middle East.
In early 1997, Pep was approached by the two largest oilfield equipment manufacturers, each of which was interested in an acquisition of the Company. The owners contacted The Dillard Anderson Group to advise them on a strategy. After discussion, the owners retained DAG, who created a competitive atmosphere between the two prospective buyers. After extensive negotiations with both buyers, PEP was sold to National Oilwell, Inc. (NYSE: NOI) at a value which far exceeded preliminary proposals. Each of the owners stayed for an integration period, then happily retired.