PEP, Inc. was founded in 1981 by Mr. Bill Hext and Mr. B.D. Berryhill. The company, located in Odessa, Texas, manufactures mud pump replacement parts. The Company sells its product line both domestically and internationally through agents in Canada, South America, Europe and the Middle East.
In early 1997, Pep was approached by the two largest oilfield equipment manufacturers, each of which was interested in an acquisition of the Company. The owners contacted The Dillard Anderson Group to advise them on a strategy. After discussion, the owners retained DAG, who created a competitive atmosphere between the two prospective buyers. After extensive negotiations with both buyers, PEP was sold to National Oilwell, Inc. (NYSE: NOI) at a value which far exceeded preliminary proposals. Each of the owners stayed for an integration period, then happily retired.