OFS Energy Fund News

October 5, 2012

OFS Energy Fund Invests Growth Equity in KW International to Build New Manufacturing Facility

 HOUSTON (Oct. 5, 2012) - OFS Energy Fund has closed on a growth equity investment in KW International, LLC, a more than 50-year provider of production and midstream equipment for oil and gas producers. Proceeds from the investment will fund KWI’s expansion into a new, advanced design manufacturing facility to be located in Columbus, Texas, by summer 2013.  

“KWI has an exciting opportunity to grow our enterprise into the 150,000-square-foot facility while continuing to provide process and production equipment for oil and gas producers,” said Kurt Wind, CEO of KWI.  “We expect to add approximately 150 new jobs and see a substantial increase in the size and scope of our business “
As part of the transaction, OFS contributed growth equity for an ownership position and arranged bank credit facilities to ensure that KWI management has a strong balance sheet from which to continue to grow the business.  
Industry pioneer Ken Wind founded Ken’s Production Equipment Locators (predecessor of KWI) as a small oil and gas startup production equipment company in Houston in 1960. KWI has grown substantially in recent years under the leadership of his oldest son Kurt, daughter Angie and a dedicated team.  
From 2010 to present, KWI has increased its product offering, opened field offices in Pennsylvania and Columbus, and grown from 84 to 151 employees. Kurt has recruited a highly experienced team in Columbus that will lead KWI’s expansion into the new facility.
“OFS is extremely proud of its new partnership with the Wind family and all of the outstanding managers at KWI,” said Bruce Ross, managing partner of OFS. “The Wind family has done an exceptional job creating a reputation for high quality equipment and growing the business. We look forward to assisting the company with its continued growth as it capitalizes on the high demand for equipment and related infrastructure in the Permian Basin and the Eagle Ford shale as well as other emerging shale plays.” 
KWI’s products are geared toward gas and liquids production, processing and transmission. Ross pointed out that capital spending on process equipment and other natural gas (and liquids) infrastructure in the US is increasing, and that the largest share of these infrastructure costs are expected to be in the southern United States.
Joining OFS on KWI’s board of directors will be Andy Smith, Natco’s former CFO. Natco, which was the largest U.S. manufacturer of process equipment, was sold to Cameron for approximately $1 billion in 2009. 
Amegy Bank of Texas provided financing for the transaction.
About KWI
KW International, LLC, based in Houston, Texas, is a provider of new and remanufactured, upstream and midstream process and production equipment and related services to the oil and gas industry. Founded by Ken Wind, KWI and its predecessor companies have provided energy solutions for more than 50 years. For more information, please visit www.kwintl.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.

OFS Energy Fund
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