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.