Houston, TX (January 16, 2018) – 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.
About Intervale Capital:
Founded in 2006, Intervale Capital is a specialized energy-focused investment firm. Intervale invests primarily in middle-market energy services and manufacturing companies. The firm has raised $1.3 billion of committed capital since its inception, and is currently investing from its third fund.
About PDC Logic:
Headquartered in Norman, Oklahoma, the Company designs, manufactures, rents, and sells matrix Poly Diamond Crystalline (PDC) bits and Roller-cone bits, used in drilling and completion operations. The Company was founded in 2007 by the Waitmans and has operations in the Permian, Mid-Continent, Eagle Ford and DJ Basins.
For PDC Logic:
For Intervale Capital:
Amberjack Capital is a specialized private equity firm that invests in and partners with entrepreneurs and business owners to build market leaders serving the industrial, infrastructure, and environmental end markets. Headquartered in Houston, the firm has raised $1.5 billion of committed capital since its inception in 2006 and has invested in over 50 companies.