Intervale Capital said Jan. 16 it acquired a majority stake in PDC Logic, a manufacturer of highly engineered drilling and completion bits with U.S. service locations in the Permian Basin, Midcontinent, Eagle Ford and Denver-Julesburg Basin.
Terms of the transaction were not disclosed.
PDC Logic, founded in 2007 by Tom Waitman, is headquartered in Norman, Okla. The company designs, manufactures, rents, and sells matrix poly diamond crystalline (PDC) bits and roller-cone bits, used in drilling and completion operations.
Tuan Tran, partner at Intervale, said PDC Logic benefits from several industry trends, including increasing drilling intensity, longer laterals, completion intensity and higher stage counts.
"We see attractive opportunities to expand PDC Logic's addressable market by introducing new bit designs and entering new markets," Tran said in a statement.
Intervale Capital, an energy-focused, private-equity firm based in Houston, primarily invests in middle-market energy services and manufacturing companies. The firm has raised $1.3 billion of committed capital since its inception in 2006, according to PDC's press release.
Waitman said in a statement, "Given Intervale's deep experience investing in the space, they are uniquely positioned to drive rapid growth of the business as we look to enter additional territories and commercialize new bit products. We are thrilled to embark on this next chapter of strategic expansion with Intervale as our growth capital partner."
Ronnie Thompson, PDC Logic's president, added, "We believe there is great opportunity to quickly grow PDC Logic into a leading independent drilling and completions bit company servicing operators in every North American basin."
Thompson has more than 10 years of oilfield service experience managing manufactured products and services businesses and has been with PDC Logic since 2016, according to the company press release.
Wheeler, Morgan & Brown PLLC provided legal counsel to PDC Logic and Baker Botts LLP was Intervale's legal counsel for the transaction. PNC Business Credit provided a working capital line and term-loan to support PDC's expansion plans, the release said.
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