[Context:On January 16, Intervale Capital announced the acquisition of PDC Logic, a drilling and completon bits manufacturer. Further details and related links are below.]
Intervale Capital Acquires a Majority Stake in PDC Logic
HOUSTON, Jan. 16, 2018/PRNewswire/ — Intervale Capital (“Intervale”), an energy-focused private equity firm, announced today that it has acquired a majority stake in PDC Logic (the “Company”), a manufacturer of highly engineered drilling and completion bits with U.S. service locations in the Permian Basin, Mid-Continent, Eagle Ford and DJ Basin.
Tom Waitman, Founder of PDC Logic, commented, “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, the Company’s President since 2016, has more than 10 years of oilfield service experience managing manufactured products and services businesses. Mr. Thompson commented, “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. We are committed to providing our customers rapid turnaround of the highest performing application-specific bits utilizing the latest cutter technologies.”
Tuan Tran, Partner at Intervale, added, “We are proud to partner with the Waitmans, Ronnie Thompson, and the Company’s excellent management team. Given Intervale’s history in the drill bit market and management’s experience building PDC Logic, we are poised for a successful partnership. The Company benefits from several secular growth 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.”
Transaction terms were not disclosed. Wheeler, Morgan & Brown, PLLC provided legal counsel to PDC Logic. Baker Botts LLP provided legal counsel to Intervale. PNC Business Credit provided a working capital line and term loan to support the Company’s expansion plans.