Standard Industrial Manufacturing Partners (Standard) has merged with DH Pump and Supply (DH Pump). A private equity fund managed by Hicks Equity Partners (HEP), the Dallas-based private equity arm of the Thomas O Hicks family office, initially invested in Standard alongside its former CEO, Jack Sitton, in July 2016.
Financial terms of this latest transaction have not ben disclosed.
Headquartered in Odessa, Texas with additional manufacturing in Granbury, Texas, Standard manufactures and distributes replacement parts for a wide range of pumps used in production and completion applications within the oil and gas industry. When a pump fails, Standard has a wide selection of replacement parts available in inventory to enable its customers to get a pump operating again and to minimise downtime. Standard’s team is made up of pump experts, not “order takers,” and most parts are shipped same day. A network of sales representatives that stocks inventory enables Standard to meet its customers’ needs across the US and Canada.
Headquartered in Weatherford, Texas with additional manufacturing in Gainesville, Texas, DH Pump operates in a similar fashion as Standard but specialises in the manufacture and repair of nickel and tungsten carbide coated metal plungers and other parts consumed in hydraulic fracturing activities. Founded in January 2014, DH Pump rapidly established itself as an industry leader based on outstanding customer service, a wide selection of available inventory and high-quality, long-lasting parts. DH Pump’s executives will join the executive team of Standard, meaning customers will continue to receive the same excellent customer service.
Standard’s CEO Barry Beadle says: “The combination of Standard and DH Pump is a winning formula. 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.”
Thomas O. Hicks, Founder and Chairman of HEP, adds: “The combination of Standard and DH Pump is a perfect fit. 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.”
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. As evidence of their enthusiasm for this transaction, DH Pump’s four shareholders will become significant shareholders in the combined company.
Humphrey says: “Standard and DH Pump’s customers do not have time to wait for replacement parts. When they need a replacement part, they need it quickly. These parts must be of high quality and delivered by pump experts with technical expertise, not order takers who simply refer the customer to catalogues and part numbers. This is the collective vision for both companies and combining Standard and DH Pump will only further that vision as we seek to serve our customers even better.”
Standard was advised on the transaction by Wick Phillips (legal), Montgomery Coscia Greilich LLP (accounting) and RCP Advisors (insurance and employee benefits). DH Pump was advised by Infinity Capital Partners (investment banking) and Kessler Collins (legal). Debt financing for the transaction was provided by ORIX Energy Capital of Dallas, Texas.
