According to the company press releaseBlackstone Energy Partners had entered into binding agreements to acquire a controlling, majority interest in Ulterra Drilling Technologies from affiliates of American Securities LLC.  American Securities and certain members of management will retain a minority equity interest in the Company going forward.  Financial terms were not disclosed.  The transaction is expected to close prior to year-end 2018.

Ulterra is the largest pure-play, independent supplier of polycrystalline diamond compact (“PDC”) drill bits to the oil and gas industry.  The Company is one of the fastest growing PDC drill bit manufacturers, having more than doubled total revenue since 2016.  Ulterra currently has a leading position in many of the most active U.S. onshore oil and gas basins, including the Permian and Eagle Ford, and has a growing presence internationally.

Ulterra’s singular focus on PDC drilling technology allows it to deliver the highest level of customer service and customisation to producers across a wide range of basins and geological formations, driving industry leading performance and durability.

“We are very excited about having Blackstone as a partner as we enter the next phase of growth.  Blackstone’s in-depth knowledge of the energy markets through their upstream and midstream companies will provide valuable insight for Ulterra.  We are also excited to have American Securities continue their involvement with the company. This new team will enable the continued expansion for our people, our culture, and our partners,” said John Clunan.

“During our partnership, John and the talented Ulterra management team have established Ulterra as a market leader through their best-in-class products and focus on customer service,” said Kevin Penn, a Managing Director of American Securities.  “We continue to believe in Ulterra and are excited to remain equity holders in the Company alongside the management team and Blackstone to pursue Ulterra’s next phase of growth,” added Michael Sand, a Managing Director of American Securities.