Hicks Equity Partners, the private equity investment vehicle of the Thomas O. Hicks family, is leading an investor group that has acquired a majority interest in Directional Rentals Inc., a privately held oilfield services company. Financial terms of the transaction were not disclosed.
Based in Lafayette, Louisiana with satellite locations in Houston, Texas, Casper, Wyoming and Bakersfield, California, Directional rents tools primarily to directional drilling companies for bottom hole assemblies used in onshore and offshore horizontal and directional drilling. The company's rental equipment portfolio consists of nearly 5,000 drill collars, stabilizers and sub-assemblies in a wide range of sizes made from non-magnetic, nickel-based specialty metal and basic carbon steel.
Directional's previous owners, Mike Domino, Jr. and Ronnie Russo have both retained minority equity stakes in the company. Mr. Domino, who joined Directional in 2009 and has been instrumental in the company's recent growth and success, has been named Chief Executive Officer of Directional. Mr. Russo, who founded the company in 1984, will remain involved in the business. In addition, Wesley DeHaven has joined Directional as Chief Operating Officer and Chief Financial Officer.
HEP has significant experience in this segment of the oilfield services industry through its previous investment in Gammaloy, Inc. A group led by the Hicks family acquired Gammaloy in 1996 and sold the business to National Oilwell Varco in 2007 for more than 13 times its invested capital. William F. Goerner, the former Chief Executive Officer of Gammaloy, has also invested in Directional and joined the company's Board of Directors. As part of the Directional transaction, Mr. Goerner and the Hicks family have contributed to Directional their ownership of Allegiant Tool & Machine, LLC, a company they founded that operates a facility in Bakersfield, California with 170 non-magnetic drill collars that services directional drilling companies operating in California and the western Rocky Mountains.
Capital One Leverage Finance has provided Directional with a term financing facility that is fully available to help fund the company's future capital expansion. Energy Capital Solutions served as financial advisor to the sellers.
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