OFS Energy Fund News

December 11, 2014

KW International, LLC (KWI) announces the acquisition of Advance Fabrication & Measurement LLC (AFM)

HOUSTON (December 11, 2014) - KW International, LLC (KWI), an OFS Energy Fund portfolio company, is pleased to announce the acquisition of Advance Fabrication & Measurement LLC (AFM).  The partnership with AFM diversifies KWI’s product offering, expands its customer base and provides an additional manufacturing facility in Midland, TX.

AFM, founded in 2008, is a Midland-based oil and gas measurement and fabrication company offering oil field services, parts and supplies. AFM’s product offering includes natural gas measurement meter runs, electronic flow meters, and numerous parts and supplies to compliment meter runs. All 100+ AFM employees were hired at KWI concurrent with closing, increasing KWI’s employees to nearly 400.  On a combined basis, the company has three manufacturing plants (Houston, Columbus and Midland) and a dozen services centers.

“This acquisition will allow us to expand our product and service offerings to provide our clients with fully integrated energy solutions,” said Don Ray, KWI’s President and CEO. “AFM brings a strong customer base and an experienced operations team with excellent knowledge of its core products.  We’re looking forward to working with their whole team and are pleased to announce that energy service veterans, Jeff Duncan, President and Kyle Phillips, Vice-President of AFM, will join KWI’s leadership team.”

KWI has grown rapidly since the 2012 recap with OFS by i) developing a state-of-the-art Columbus facility, ii) establishing a Hobbs, New Mexico service/supply shop and Permian Basin based service team, iii) recruiting a Rockies-based service team and iv) expanding its standard product offering to assist customers with selecting the right product at competitive price and delivery schedule. The company has recruited and hired a senior management team - including but not limited to CEO, COO and CFO positions - that is capable of leading the integration of AFM and continuing to grow KWI’s production equipment businesses efficiently and profitably.  The company has added over 100,000 square feet of manufacturing capacity and a handful of service centers in last two years.

Jerad McMayon, OFS Partner, stated “OFS is pleased to provide financial and strategic support to KWI and its senior management team with its growth plans. This acquisition not only grows and diversifies KWI but also brings together two businesses with similar entrepreneurial cultures and strong values to accelerate future growth.”

“We are definitely looking forward to this new chapter, and are very optimistic about the synergies that clearly exist between KWI and AFM,” said Jeff Duncan. “Moving forward, we will bring the same level of commitment AFM has always offered and look ahead to continued growth and success as the newest members of the KWI team.”

About KW International
KW International, LLC (KWI), with headquarters in Houston and 12 branches across the U.S., fabricates a full line of oil and gas production and process equipment.  KWI’s staff of engineers, sales and service technicians have centuries of combined experience to respond to rising energy demands. The company proudly offers ASME code equipment that is manufactured to meet compliance standards for sweet oil/gas, NACE and 14C federal waters requirements. KWI has become a leader in the industry, maintaining an inventory of new and recertified equipment. For more information on KW International, please visit www.kwintl.com

About Advance Fabrication & Measurement
Advance Fabrication & Measurement LLC (AFM) was founded in 2008 in Midland, TX  and specializes in oil and gas measurement equipment and field services. AFM’s primary products are natural gas measurement meter runs, electronic flow meters, and other parts and supplies to compliment meter runs as well as field services and vessel fabrication.  For more information about AFM, please visit www.advancefabricationmeasurement.com

About OFS Energy Fund
Houston-based OFS Energy Fund is a private equity firm that specializes in acquiring and recapitalizing lower middle-market energy service companies. OFS seeks to provide capital to business owners including buyouts, recapitalizations and growth equity investments. The Fund supports the development of management, appropriate governance, professionalization of reporting and tracking of operating metrics. OFS currently has under management in excess of $300mm of committed private equity capital across its Funds II and III. Additionally, OFS lends industry relationships, ideas for operational improvement and support in developing strategic growth plans and initiatives. For more information please visit www.ofsfund.com

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