PEF acquires majority stake in production tank/vessel maker Petrosmith

Private equity firm (PEF) Blue Wolf Capital Partners said Monday an affiliate of Blue Wolf Capital Fund IV acquired a majority stake in Petrosmith, a provider of production equipment and oilfield tubular goods (OCTG) to the domestic oil and gas industry.

Terms of the transaction were not disclosed, Kallanish Energy reports.

Petrosmith manufactures a broad suite of tanks (including oilfield storage tanks and gun barrel tanks) and vessels (including heater treaters, separators and vapor recovery towers) used by exploration and production companies primarily in the Permian Basin, Eagle Ford and Mid-Continent region.

The company also sells a variety of new and used OCTG and provides an array of OCTG refurbishment services. Petrosmith also has state-of-the-art coating facilities that service the company’s tank, vessel and OCTG divisions. In addition, Petrosmith provides plug and abandonment services to E&P companies.

The 35-year-old company is headquartered in Abilene, Texas. Petrosmith founder Cliff Smith, will remain with the company as CEO and will retain an ownership stake in the Company.

Charlie Miller, Aakash Patel and Rick Tattersfield, respectively partner, principal and operating partner at Blue Wolf, have joined Petrosmith’s board.

 “We are excited to be part of the Petrosmith family,” said Blue Wolf’s Miller. “Cliff and his team have built a business that is recognized in the industry for the quality and reliability of its products and the flexibility of its manufacturing process to meet evolving customer demands.”

The Petrosmith investment is the first investment made by Blue Wolf Capital Fund IV, which closed last September  at its hard cap of $540 million. It is also Blue Wolf’s second investment in the energy services sector, following the firm’s December 2016 acquisition of Extreme Plastics Plus, Inc., an environmental containment company that primarily serves the domestic oil and gas industry.

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