P&M Corporate Finance (PMCF) is pleased to announce that it served as exclusive financial advisor to Hancock Park Associates, a Los Angeles based private equity group with additional offices in Houston, in its successful sale of Houston-based Drilltec to private equity investors Lubar & Co. (Lubar) and Pouschine Cook Capital Management (Pouschine Cook). Hancock Park acquired Drilltec in May 2007 and facilitated significant growth of the business during its investment period.
For the past 30 years Drilltec has been the industry leader in innovating, engineering, and manufacturing critical protection products for the oil country tubular goods (OCTG) market. Drilltec’s products are used to protect drill pipe, tubing, and casing from being damaged when stored, racked, or transported around the world. The Company services large integrated international oil companies, contract drillers, pipe manufacturers, threaders, and others across its international customer base. Drilltec has earned a #1 market share in OCTG thread protectors and industrial packaging systems through successful innovation, expansion of its high-quality product offerings, global customer service, and a clear understanding of industry needs. Drilltec’s products are currently manufactured in the United States, Europe, Argentina, Japan, Southeast Asia, and Mexico with new manufacturing expansions in Saudi Arabia and Brazil.
Bryan Baker, CEO of Drilltec, saw an ideal match between Drilltec and its new investors noting, “Lubar and Pouschine Cook fit the mold for what we were seeking in an investment firm – extensive industry knowledge and experience; a strong understanding of our strategic business model and short- and long-term goals; a desire for a constructive long-term relationship; and a successful track record of collaborating to support rapidly growing companies.”
Hancock Park and Drilltec selected PMCF’s Plastics & Packaging Group, led by John Hart, to conduct an international sale process for the Company. The mandate was to identify a partner to support the Company’s growth into new geographies, continued investment in new product development, and expansion into new market segments. Ken Watler, a Principal with Hancock Park, said “PMCF’s creative approach, plastics and packaging industry expertise, and highly organized process allowed for a sale at an attractive valuation for our investors and resulted in a great fit for Drilltec’s management team.” Baker noted, “PMCF played an integral role working with us to find a partner that understood our long-term objectives and shared Drilltec’s vision for growth. Their detailed presentation of Drilltec’s strategic growth plan and position as a global market leader added considerable value to this successful transaction.”
PMCF facilitated discussions and negotiations with a range of potential strategic and financial parties in a process that ultimately resulted in a successful transaction with Lubar and Pouschine Cook, which closed March 16, 2012.
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