Tue, 13/02/2018 - 10:26
An affiliate of Blue Wolf Capital Fund IV has acquired a majority stake in Petrosmith, a provider of production equipment and oilfield tubular goods (OCTG) to the domestic oil and gas industry. Terms of the transaction have not been disclosed.
Petrosmith manufactures a broad suite of tanks (including oilfield storage tanks and gun barrel tanks) and vessels (including heater treaters, separators and vapour recovery towers) used by large E&P companies primarily in the Permian Basin, Eagle Ford and Mid-Continent region. The Company also sells a variety of new and used OCTG and provides a wide array of OCTG refurbishment services. Petrosmith also has state-of-the-art coating facilities that service the Company’s tank, vessel and OCTG divisions. In addition, the Company provides plug and abandonment services to E&P companies. Founded by Cliff Smith in 1983, Petrosmith is headquartered in Abilene, Texas and has approximately 300 employees.
Smith will remain with Petrosmith as Chief Executive Officer and will retain an ownership stake in the Company. Charlie Miller, Aakash Patel and Rick Tattersfield, respectively Partner, Principal and Operating Partner at Blue Wolf, have joined Petrosmith’s Board of Directors.
Smith says: “We are extremely pleased to have partnered with Blue Wolf and are eager to collaborate with them. Our new partners have shown a commitment to supporting our employees and providing us with the capital and guidance to execute on our growth plan. We believe that this new partnership will be instrumental in helping our company extend its leading position in the market.”
Miller says: “We are excited to be part of the Petrosmith family. Cliff and his team have built a business that is recognised in the industry for the quality and reliability of its products and the flexibility of its manufacturing process to meet evolving customer demands. Petrosmith is well positioned to benefit from the ongoing recovery in the domestic energy market.”
Patel adds: “Blue Wolf is excited about this investment and we are eager to work closely with Petrosmith’s management team. We believe Blue Wolf’s operational expertise and capital support will allow the Company to rapidly increase output and expand its manufacturing footprint to take advantage of current demand and to fuel long-term growth.”
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