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.