PE Deals

Industrial Growth Partners sells Great North Wellhead to Dril-Quip

Great North Wellhead is an Edmonton-based provider of a full range of customized wellheads, completions solutions and field support services.

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  • The purchase price is $80 million in cash
  • There are also potential earn-out payments of up to about $23 million to be paid over the course of 2024 and 2025 if Great North meets specific revenue growth targets
  • Dril-Quip is a Houston-based developer, manufacturer and provider of engineered equipment, service and technologies for the energy industry

Industrial Growth Partners has sold its stake in Great North Wellhead, an Edmonton-based provider of a full range of customized wellheads, completions solutions and field support services, to Dril-Quip for about $80 million in cash.

Great North generates annual revenue of around $100 million with accretive EBITDA margins, resulting in an annual EBITDA of around $25 million.

In addition to the upfront consideration, there are potential earn-out payments of up to about $23 million to be paid over the course of 2024 and 2025 if Great North meets specific revenue growth targets.

Industrial Growth Partners acquired a majority stake in Great North in 2018. During the firm’s ownership, Great North made strategic investments in capital assets, personnel and new product development, which were enhanced by the completion of an add-on acquisition in 2021.

Dril-Quip is a Houston-based developer, manufacturer and provider of engineered equipment, service and technologies for the energy industry. Great North’s products and services will be integrated within the company’s existing well construction segment.

The acquisition of Great North will grow Dril-Quip’s engineered services portfolio while also expanding its geographic presence. The estimated revenue synergies are around $20 million to $30 million annualized utilizing Dril-Quip’s existing footprint.

“This transaction will be immediately accretive to our shareholders in terms of returns on invested capital, adjusted EBITDA and free cash flow,” said Jeff Bird, Dril-Quip’s president and CEO, in a statement.

Industrial Growth Partners is a San Francisco-based private equity firm focused on acquiring mid-market industrial manufacturing and niche services businesses.