Post Oak Energy Capital LP is backing Prime Downhole Holdings LLC, a Houston-based downhole tools provider formed by CEO Leif Syversenn who has a successful history of building oilfield manufacturing companies.
Post Oak, an energy-focused private equity firm also based in Houston, said Jan. 8 it led a $50 million equity commitment to Prime, adding that the Prime management team will co-invest alongside Post Oak as part of the partnership.
Prime is a global provider of engineered services and manufactured products, primarily focused on downhole tools, to the oil and gas industry with existing assets and product lines currently in place. The company also provides a platform on which to build a diversified oilfield equipment manufacturing company, which the senior management team of Prime has a track record of success in doing.
Prior to forming Prime, Syversen and members of his team were involved in building BasinTek, which was acquired by Riverstone Holdings-backed Abaco Energy Technologies LLC, as well as Dyna-Drill, now a subsidiary of Schlumberger Ltd. (NYSE: SLB).
Syversen intends to grow Prime both organically and through acquisition with a focus on manufacturing tools that are consumed primarily in the development and production of unconventional basins both domestically and internationally.
“Our team is skilled at building value through a combination of aggressive organic growth and adding strategic acquisitions that fit our manufacturing profile,” Syversen said in a statement, adding
He added that Prime looked for a strategic partner for six months before partnering with Post Oak, which he described as “the right equity partner.”
Post Oak Managing Director Philip Davidson said in a statement regarding the partnership: “With the existing platform in place and management’s track record of building successful oilfield manufacturing companies, Prime is well positioned to deliver value over time to all stakeholders and Post Oak looks forward to providing capital and support to management in this endeavor.”
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