Hicks Equity Partners Leads Investor Group Interested In Directional Rentals
Acquired majority interest in oilfield service provider, gaining 5,000 drill collars, stabilizers and sub-assemblies operating in TX, WY & CA.
Dallas-based private-equity investment vehicle Hicks Equity Partners, a vehicle of the Thomas O. Hicks family, is leading an investor group that has acquired a majority interest in privately held, Lafayette, La-based Directional Rentals Inc. for an undisclosed price.
Directional Rentals provides oilfield services in Louisiana, Texas Wyoming and California, Directional rents tools primarily to directional drilling companies for bottom-hole assemblies used in onshore and offshore horizontal and directional drilling. The company's rental equipment portfolio consists of nearly 5,000 drill collars, stabilizers and sub-assemblies in a wide range of sizes made from non-magnetic, nickel-based specialty metal and basic carbon steel.
Directional's previous owners, Mike Domino Jr. and Ronnie Russo have both retained minority equity stakes in the company. Domino, who joined Directional in 2009 and has been instrumental in the company's recent growth and success, has been named chief executive of Directional. Russo, who founded the company in 1984, will remain involved in the business. In addition, Wesley DeHaven has joined directional as chief operating officer and chief financial officer.
Hicks Equity Partners has experience in this segment of the oilfield services industry through its previous investment in Gammaloy Inc. A group led by the Hicks family acquired Gammaloy in 1996 and sold the business to National Oilwell Varco in 2007 for more than 13 times its invested capital. William F. Goerner, the former CEO of Gammaloy, has also invested in Directional and joined the company's board. As part of the Directional transaction, Mr. Goerner and the Hicks family have contributed to Directional their ownership of Allegiant Tool & Machine LLC, a company they founded that operates a facility in Bakersfield, Calif., with 170 non-magnetic drill collars that services directional drilling companies operating in California and the western Rocky Mountains.
Hicks Equity Partners chairman and CEO Thomas O. Hicks says, “We believe that new technologies that enable drillers to extract oil and gas from shale formations are a game changer for the energy sector and Directional is well-positioned to capitalize on this compelling trend.”
Capital One Leverage Finance has provided Directional with a term financing facility that is available to help fund the company's future capital expansion.
Energy Capital Solutions is financial advisor to Directional Drilling.