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.