Blue Wolf Capital Partners LLC said Feb. 12 it acquired a majority stake in Petrosmith LLC, a provider of production equipment and oilfield tubular goods (OCTG) in the Permian Basin, Eagle Ford and Midcontinent regions.
The terms of the acquisition weren’t disclosed. The investment, which is the New York-based firm’s first since closing Blue Wolf Capital Fund IV LP at its hard cap of $540 million in September 2017, is expected to facilitate rapid expansion at Petrosmith, according to the Blue Wolf press release.
Founded by Cliff Smith in 1983, Petrosmith is headquartered in Abilene, Texas, and has roughly 300 employees. Smith will remain with Petrosmith as CEO and will retain an ownership stake in the company.
Petrosmith manufactures a broad suite of tanks including oilfield storage tanks and gun barrel tanks and vessels such as heater treaters, separators and vapor recovery towers used by large E&Ps primarily in the Permian Basin, Eagle Ford and Midcontinent region, the release said.
In addition, Petrosmith has state-of-the-art coating facilities that service the company’s tank, vessel and OCTG divisions. The company also provides plug and abandonment services to E&Ps and sells a variety of new and used OCTG as well as a wide array of OCTG refurbishment services.
Smith said in a statement, “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.”
The Petrosmith investment is Blue Wolf’s second investment in the energy services sector, following the firm’s December 2016 acquisition of Extreme Plastics Plus Inc., an environmental containment company that primarily serves the domestic oil and gas industry, the release said.
Blue Wolf Partner Charlie Miller, Principal Aakash Patel and Operating Partner Rick Tattersfield have joined Petrosmith’s board of directors as part of the transaction.
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