OFS Energy Fund News

December 5, 2012

OFS Energy Fund, CSL Capital Management, Other Investors Complete Purchase of Rotary Drilling Tools

HOUSTON (DEC. 5, 2012)— OFS Energy Fund, CSL Capital Management and other strategic investors have successfully completed the purchase of a majority of Rotary Drilling Tools (RDT) from its previous owner, SERVAgroup, a portfolio company of Wexford Capital.

 
RDT, headquartered in Beasley, Texas, manufactures, services and repairs downhole drilling tools and other OCTG products. All manufacturing is conducted in Beasley while additional service and repair facilities are located in Rifle, Colo.; Evanston, Wyo.; Mexico and Colombia.
 
The RDT management team, led by CEO Sealy Morris, elected to reinvest all of its ownership in order to retain a significant minority interest in the company. Morris started the business in 2006, and, together with his team, he has built RDT and its related businesses into a leading participant in the North American drilling tools market.
 
“We are firmly committed to rapidly growing the business from this point forward,” Morris said. “Given the historical knowledge and working history among OFS, CSL and their partners, we were able to work on an expedited basis and close the transaction in approximately 65 days from the LOI date.”
 
Bruce Ross, managing partner of OFS, said, “We are happy to work with CSL Capital Management and Byron Adams, Jr., who is representing the Adams family investment and is also a partner in the OFS Energy Fund. Working with CSL Capital Management and the Adams family allowed us to perform a full level of due diligence and close the transaction quickly without interrupting management’s continued efforts to grow the business.”
 
Amegy Bank of Texas provided transaction financing, and Lockton Marine and Energy provided a new commercial insurance and benefits program.
 
About Rotary Drilling Tools
Rotary Drilling Tools USA, LP, headquartered in Beasley, Texas, manufactures, services and repairs downhole drilling tools and other OCTG products. All manufacturing is conducted in Beasley while additional service and repair facilities are located in Rifle, Colo.; Evanston, Wyo.; Mexico and Colombia. The management team has more than 150 collective years of experience in the manufacturing of oilfield tubular products. For more information, please visit www.rdt-usa.com.
 
About OFS Energy Fund
Houston-based OFS Energy Fund is one of the few professionally managed private equity firms that specializes in acquiring and recapitalizing lower middle-market energy service companies with identifiable paths for organic and acquisitive growth. OFS seeks to provide growth equity solutions for business owners, such as buyouts, recapitalizations and growth equity investments. The Fund supports the development of management, appropriate governance, professionalization of reporting and tracking of operating metrics. Additionally, OFS adds value by lending industry relationships, ideas for operational improvement and support in developing strategic plans and initiatives. For more information, please visit www.ofsfund.com.
 
About CSL Capital Management
CSL Capital Management is a leading growth equity firm with a value oriented investment strategy focused on energy businesses in the U.S. and internationally. The CSL team has deep sector expertise in the energy industry and takes a very hands-on approach to investments, relying on fundamental growth and strategic thinking, rather than financial engineering, to generate success. Through several investment vehicles, the firm currently manages approximately $600 million in equity capital and commitments.
 

OFS Energy Fund
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Main Number: (713) 580-2727