Drilling Tools International (DTI), a portfolio company of Hicks Equity Partners, has acquired the drill pipe rental division (Premium Rental Tools) of Premium Oilfield Services.
Premium Rental Tools rents drill pipe, tubing work strings, blowout preventers and handling tools to exploration and production (E&P) companies that operate in the Permian, Bakken, Gulf of Mexico shelf and Gulf Coast land markets. Premium Rental Tools has facilities in New Iberia, LA (headquarters); Odessa, TX; and Watford City, ND.
Led by Jim Rowell, Premium Rental Tools’ executive management team will continue to lead the business as part of DTI. “Our entire team is excited to join DTI and to have the support of Hicks Equity Partners,” said Mr. Rowell. “As we considered a range of future opportunities for our business, it became very clear to us that this is the best path forward for our customers and our employees. DTI has built an exceptional platform in a short period of time and shares our customer-centric culture.”
DTI supplies bottom-hole assembly and drill string tools to exploration and production companies, major oilfield services companies, directional drilling companies and drilling contractors for use in onshore and offshore horizontal and directional drilling.
The company has a substantial rental equipment portfolio consisting of stabilizers, drill collars, sub-assemblies, casing centralizers, specialty roller reamer products and other downhole tools in a range of sizes made from both non-magnetic and carbon steel. DTI, led by CEO Wayne Prejean, is headquartered in Houston and has additional operating locations across Louisiana, Texas, Oklahoma, Wyoming, North Dakota, Pennsylvania, California, and Canada (www.drillingtools.com).
“Premium Rental Tools is an outstanding addition to the Drilling Tools International platform we have been building over the past six years,” said Thomas O. Hicks, Chairman and Chief Executive Officer of Hicks Equity Partners. “The business’ product line complements DTI’s existing rental portfolio, and we believe it is well-positioned for growth as part of DTI. The management team of Premium Rental Tools has built an attractive business, and we are delighted to welcome them to the team as we continue to build a premier rental company for the drilling sector under Wayne Prejean’s outstanding leadership.”
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).
Premium Oilfield Services is headquartered in Houston (www.premiumofs.com).
Houston-based investment bank PPHB (www.pphb.com) was the financial advisor to Premium Oilfield Services.
Financing for this acquisition was provided by PNC Business Credit.
© 2018 Private Equity Professional | April 27, 2018