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.

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