Intervale Capital has acquired Milam Tool Company, a manufacturer of products used in oil and gas applications. In conjunction with the Milam transaction, Intervale also acquired K&M Machine Works, a manufacturer of casing accessories. The assets of both Milam and K&M will be held under a newly-formed holding company called Benchmark Completions LLC.
Milam Tool Company is a manufacturer of solid-body centralizers, stabilizers, and stop collars. The company was founded in 1985 and is headquartered in Oklahoma City, OK (www.milamtool.com). K&M Machine Works is a manufacturer of casing accessories including threaded couplings, joints, crossovers, stop collars and sub-assemblies. The company is based in Spring, TX (www.kmmachineworks.com). Milam and K&M both participate in the approximately $1.5 billion casing and cementation hardware market, which has grown at a 12% compounded annual growth rate since 2005, according to Spears & Associates.
Clayton Plucheck has been named President and Chief Executive Officer of Benchmark. Mr. Plucheck joins Benchmark after a career in casing hardware, having previously served as R&D Manager in Weatherford International’s casing hardware division. He also co-founded Ferro-Tube Oil Tools and Liner Shoes, two businesses in the casing and cementation hardware segment.
“I’m thrilled to partner with Milam, K&M and Intervale Capital to build a best-in-class casing hardware and accessories company,” said Mr. Plucheck. “Benchmark is committed to delivering to the market cutting-edge casing hardware products. We will build on Milam and K&M’s track records of superior quality, customer service and on-time delivery.”
Intervale Capital invests exclusively in middle-market oilfield services and manufacturing companies and related technologies. The firm has more than $650 million under management and is currently investing from its second fund. Intervale was founded in 2006 and is headquartered in Cambridge, MA with an additional office in Houston, TX (www.intervalecapital.com).
“We are excited to partner with Clayton to accelerate Milam and K&M’s growth. Milam’s solid-body centralizers allow Benchmark to participate in the rapidly growing horizontal centralization market in the U.S. K&M expands Benchmark’s manufacturing capacity, particularly for customers’ threaded coupling requirements in demanding onshore and offshore applications,” said Tuan Tran, a Vice President at Intervale.
© 2013 PEPD • Private Equity’s Leading News Magazine • 7-8-13