Directional Rentals, Inc., a Lafayette, Louisiana-based oilfield services company, has received a majority equity investment of undisclosed amount.
The round was led by Hicks Equity Partners, the private equity investment vehicle of the Thomas O. Hicks family.
William F. Goerner, the former CEO of Gammaloy, has also invested in Directional and joined the company’s Board of Directors. As part of the transaction, Mr. Goerner and the Hicks family have contributed to Directional their ownership of Allegiant Tool & Machine, LLC, a company they founded that operates a facility in Bakersfield, California with 170 non-magnetic drill collars that services directional drilling companies operating in California and the western Rocky Mountains.
Previous owners Mike Domino, Jr. and Ronnie Russo have both retained minority equity stakes in the company. Mr. Domino has been named CEO while Mr. Russo, who founded the company in 1984, will remain involved in the business. In addition, Wesley DeHaven has joined Directional as COO and CFO.
The investment will help the company further enhance the products and services and open new locations to serve customers as they expand into attractive oil-producing regions. Capital One Leverage Finance has provided a term financing facility to help fund Directional’s future capital expansion.
With satellite locations in Houston, Texas, Casper, Wyoming and Bakersfield, California, the company rents tools primarily to directional drilling companies for bottom hole assemblies used in onshore and offshore horizontal and directional drilling. Its rental equipment portfolio includes nearly 5,000 drill collars, stabilizers and sub-assemblies in a wide range of sizes made from non-magnetic, nickel-based specialty metal and basic carbon steel.