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.

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