oil and gas equipment

Hicks Adds to Standard Industrial

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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

Victory Park Acquires Surefire

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Victory Park Capital has acquired nearly all of the assets of Surefire Industries USA, a maker of equipment used in the oil and gas industry. Post closing, Victory Park will operate the business under the name Surefire Industries, LLC.

Surefire Industries manufactures and supplies equipment for onshore and offshore hydraulic fracturing, coiled tubing, cementing, nitrogen and fluid pumping services. Surefire employs approximately 150 people and is headquartered in Houston with an additional office in Dallas (www.surefireusa.com).

Surefire Industries is led by President C. Jim “Jamie” Stewart, IV. “The asset purchase by Victory Park puts an end to a challenging 12 months and affords us a new start with a new balance sheet. The professionals at VPC understand our business, our customer base, and what’s required to ensure that our business remains at the forefront of the pressure pumping equipment and services industry,” said Mr. Stewart.

“Surefire represents an excellent opportunity for VPC to leverage its experience in the energy and oilfield services sectors,” said Derek Ferguson, Vice President with VPC. “We see significant opportunity for Surefire as a company with a strong balance sheet and innovative equipment designs. The company has an experienced management team and a highly skilled employee base committed to developing Surefire into a world-class supplier of diversified equipment and solutions for the global pressure pumping industry.”

Victory Park Capital (VPC) invests from $10 million to $50 million per transaction in small cap public companies and middle market private companies that typically generate less than $150 million in revenue and less than $30 million of EBITDA. The firm focuses on complex situations and seeks to build long term sustainable value in its companies. Victory Park was founded in 2007 and is based in Chicago with additional offices in Boston, New York and San Francisco (www.victoryparkcapital.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 4-3-14

Intervale Acquires Milam Tool and K&M Machine Works

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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

Odyssey Acquires Cross Country Pipeline Supply

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Odyssey Investment Partners has acquired Cross-Country Pipeline Supply Co., an equipment and supplies provider to the oil and gas pipeline construction industry. This acquisition is Odyssey’s seventh investment in the industrial rental services sector.

Cross Country provides equipment to the domestic pipeline construction industry for rent and sale. The company’s customers are typically pipeline contractors engaged by energy companies to construct new pipeline or retrofit or repair existing lines. Cross Country also sells consumable parts and supplies. The company is based in Aurora, CO (www.ccpipeline.com).

“The market opportunities within the domestic oil and natural gas pipeline industry are dramatic, largely driven by shale plays. However, the infrastructure supporting the industry generally and shale production specifically is aging and insufficient,” said Stephen Berger, Chairman of Odyssey Investment Partners. “Cross Country is positioned to take advantage of the current expansion in the shale space by being a “one-stop shop” for key equipment and consumable supplies used in the pipeline construction, maintenance, and repair market.”

The Cross Country management team, led by President John James, will continue to head the company. “Odyssey’s investment in Cross Country signals a new and exciting chapter of growth for our company. With the support of a leading financial partner, we are well prepared to execute our growth strategy by capitalizing on the enormous potential in the domestic oil and gas pipeline industry,” said Mr. James.

Odyssey Investment Partners is a middle-market private equity firm with more than $3 billion under management. Odyssey makes control investments primarily in established middle-market companies in a variety of industries, including industrial manufacturing; business, financial and healthcare services; aerospace products; and localized and route-based service businesses. The firm has offices in New York and Woodland Hills, CA (www.odysseyinvestment.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 6-19-13