BIRMINGHAM, Ala. November 12, 2013 – The Principals of Founders Investment Banking, LLC announce the sale of Tornado Production Services, LLC (Tornado), a leading completion fluids services provider, to Professional Directional Enterprises, Inc.(ProDirectional), a full service directional drilling company and portfolio company of Diamond Castle Holdings, LLC. Tornado’s management retained a meaningful stake in the enterprise moving forward and was exclusively advised by principals of Founders Investment Banking. The transaction closed on September 4, 2013 and was led by Duane P. Donner II and Joe H. Brady III of Founders’ Oil & Gas Services Group.
Tornado Production Services, based in Orange Grove, TX, is an oilfield services business providing completion fluid blends and customized engineering services to onshore drilling operations in many of the fastest growing drilling regions in the United States. Tornado has exhibited remarkable growth while building one of the strongest reputations for quality service in its industry. The acquisition by ProDirectional provides a platform to support Tornado’s continued growth while developing a strong, value-added partnership.
“We are excited about working with ProDirectional. We share similar values and outlook on the oilfield, and we look forward to building this business together,” said Scott Kirchoff, president of Tornado Production Services. “The Founders team did an excellent job finding the right partner for Tornado and advising us throughout the process.”
“Tornado built a quality product offering and strong reputation for service, and we believe it will be a great addition to our existing ProDirectional service lines,” said Lee Wright, president of ProDirectional. “There is a tremendous market opportunity in the completion fluids space, and we feel that the Tornado team combined with the ProDirectional platform is the right combination to seize this opportunity.”
In 2000, Founders assisted Kirchoff in recapitalizing Tornado Thru Tubing Services, LLC, a previous oilfield service company of Kirchoff’s. After Kirchoff and his team grew the company substantially, Founders facilitated a sale of the company to Oil States International Inc. (NYSE: OIS) a large, publicly-traded oilfield services provider.
“Scott, Roger Floyd and the team at Tornado are a great group of oilfield veterans and are well positioned to take advantage of the opportunities before them,” said Duane Donner, managing director at Founders Investment Banking. “It’s exciting to follow the success of our alumni clients, and a great pleasure when we get to work with them on multiple transactions. We look forward to watching what ProDirectional and Tornado achieve together.”
About Founders Investment Banking, LLC
Founders Investment Banking is a merger and acquisition advisory firm based in Birmingham, Alabama. Its team’s proven expertise and process-based solutions help companies and business owners access capital and prepare for and execute liquidity events to achieve specific financial goals. The firm’s practice areas include a General Transaction Practice, which serves clients from various industries located in the Deep South, an Oil and Gas Services Practice focused on the U.S. oilfield services sector, and an Internet & Digital Media Practice that serves clients operating nationwide in the Internet and digital media sector. For more information, visit www.foundersib.com. In order to assist Founders Investment Banking with securities related transactions, including this transaction, its Principals are registered investment banking agents of M&A Securities Group, Inc., member FINRA/SiPC. M&A Securities and Founders are not affiliated entities. The testimonial presented herein does not guarantee future performance or success.
About Tornado Production Services, LLC
Tornado Production Services is a rapidly growing multi-basin energy services company that provides completion fluid solutions throughout the major U.S onshore shale markets. Led by industry veterans Scott Kirchoff and Roger Floyd, Tornado has exhibited remarkable growth while building one of the strongest reputations for quality and service in the industry.
About Professional Directional Enterprises, Inc.
ProDirectional, founded in 2001 and based in Conroe, TX, is a leading independent provider of directional and horizontal drilling services with seven locations strategically located throughout the US. The company provides a complete suite of directional drilling services including well planning and engineering, downhole motor technology and guidance and measurement while drilling (“MWD”) services. The company also provides conventional coring and thru tubing services.
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