Intervale Capital has acquired Milam Tool Company. Financial terms weren’t announced. Milam, of Oklahoma City, makes solid-body centralizers, stabilizers, and stop collars.
CAMBRIDGE, Mass., July 8, 2013 /PRNewswire/ — Intervale Capital (“Intervale”) has acquired Milam Tool Company (“Milam”). Founded over 27 years ago, Milam is a pioneer in the development and commercialization of solid-body centralizers for horizontal well applications. Headquartered in Oklahoma City, Milam has built a premium brand in casing centralization with its commitment to innovation, customer service and on-time delivery. Intervale is a private equity firm which invests exclusively in oilfield manufacturing and service companies.
In conjunction with the Milam transaction, Intervale also acquired K&M Machine Works (“K&M”), a Houston-based manufacturer of threaded couplings, stop collars, crossovers, and sub-assemblies for the casing accessories market. K&M’s products are used in both onshore and offshore applications. The assets of both Milam and K&M will be held under a newly-formed holding company called Benchmark Completions LLC (“Benchmark”).
Clayton Plucheck has been named President and Chief Executive Officer of Benchmark. Clayton joined Benchmark after a successful career in casing hardware, having previously served as R&D Manager in Weatherford International’s casing hardware division. Clayton also co-founded Ferro-Tube Oil Tools and Liner Shoes Inc., two successful businesses in the casing and cementation hardware segment.
Clayton Plucheck commented, “I’m thrilled to partner with Milam, K&M and Intervale Capital to build a best-in-class casing hardware and accessories company. Benchmark is committed to delivering to the market cutting-edge casing hardware products. We will build on Milam and K&M’s track records of superior quality, customer service and on-time delivery.”
Tuan Tran, Vice President at Intervale, commented, “We are excited to partner with Clayton to accelerate Milam and K&M’s growth. Milam’s solid-body centralizers allow Benchmark to participate in the rapidly growing horizontal centralization market in the U.S. K&M expands Benchmark’s manufacturing capacity, particularly for customers’ threaded coupling requirements in demanding onshore and offshore applications.”
Milam and K&M both participate in the approximately $1.5 billion casing and cementation hardware market, which has grown at a 12% compounded annual growth rate since 2005, according to Spears & Associates.
About Milam Tool Company:
Milam Tool Company is a manufacturer of solid-body centralizers, stabilizers, and stop collars. Founded in 1985, Milam was an original pioneer in the development and commercialization of solid-body centralizers, which are used primarily in horizontal oil and gas applications. The company is headquartered in Oklahoma City, Oklahoma and has a regional office in Lafayette, Louisiana.
About K&M Machine Works:
K&M Machine Works is a quick turnaround manufacturer of casing accessories including threaded couplings, joints, crossovers, stop collars and sub-assemblies. The company is based in Spring, Texas.
About Intervale Capital:
Intervale Capital is an energy-focused private equity firm with offices in Boston and Houston. Intervale invests exclusively in middle-market oilfield services and manufacturing companies and related technologies. The firm has raised over $650 million of committed capital since its inception in 2006 and is currently investing from its second fund.
Intervale portfolio companies include Allied Oil & Gas Services (cementing and acidizing services), Team Oil Tools (completion tools), Aegis Chemical Solutions (production chemicals), Antelope Oil Tools (casing and cementation hardware), Certus Energy Solutions (drill pipe and tubing rental) and Proserv Group (subsea equipment and services).