Standard Industrial Manufacturing Partners, a portfolio company of Hicks Equity Partners, has acquired DH Pump and Supply. Hicks Equity acquired Standard in July 2016.
Standard manufactures and distributes replacement parts for a range of pumps that are used in production and completion (the process of making a well ready for production) applications within the oil and gas industry. Standard maintains a wide selection of replacement parts at multiple stocking locations across the US and Canada that allows it to minimize downtime for its customers in the event of a part failure. Standard was founded in 1976 and is headquartered in Odessa, TX with an additional manufacturing facility in Granbury, TX (www.standardpumpparts.com).
DH Pump specializes in the manufacture and repair of nickel and tungsten carbide coated metal plungers and other parts consumed in hydraulic fracturing activities. The company was founded in 2014 and is headquartered west of Fort Worth in Weatherford, TX with an additional manufacturing facility in Gainesville, TX (www.dhpumpsupply.com).
DH Pump’s management team is led by Jeff Humphrey, Shelton Medlock and Justin Donaldson, each of whom will join Standard’s executive team. DH Pump’s fourth shareholder, Jeff Isbell, will join Standard’s board of directors. All four of DH Pump’s shareholders will have equity interests in the combined company.
“The combination of Standard and DH Pump is a winning formula,” said Standard’s CEO Barry Beadle. “Both companies pride themselves on delivering high-quality replacement parts to their customers when and where they need them. We understand that eliminating downtime is an enormous emphasis for the oil and gas industry, and we take this mission seriously by staffing our company with pump experts, maintaining a wide selection of parts and offering industry-leading customer service.”
“The combination of Standard and DH Pump is a perfect fit,” said Thomas Hicks, founder and chairman of Hicks Equity Partners. “For 40 years, Standard has been a leader in supplying replacement parts for pumps used in production applications. While DH Pump’s history is more limited, its talented team has rapidly established DH Pump as a leading provider of replacement parts for hydraulic fracturing pumps. By combining Standard and DH Pump, Standard will become one of the country’s largest manufacturers and distributors of consumable products used in oil and gas pump applications.”
Hicks Equity Partners is the private equity arm of Hicks Holdings, a holding company for the Thomas O. Hicks family’s assets. Mr. Hicks pioneered the “buy and build” strategy of investing and founded Hicks Muse Tate & Furst, which raised more than $12 billion of private equity across six funds and completed over $50 billion of leveraged acquisitions. Hicks Equity Partners is based in Dallas (no website found).
Oklahoma City-based investment bank Infinity Capital Partners (www.infinitycappartners.com) was the financial advisor to DH Pump.
Debt financing for the transaction was provided by Dallas-based ORIX Energy Capital.
© 2019 Private Equity Professional | March 19, 2019
