International Oil & Gas Rig Parts Distributor

Business Overview:

Oil field parts distributor. Specializes in locating and supplying parts and equipment for drilling and well servicing rigs. The clientele spans North America, Asia, Middle East, and Europe. Based in Houston Texas. Nimble in size and competes on speed of delivery and cost. Global marketing and distribution footprint with scalable business model. 2020 was an excellent year despite the global pandemic impact on oil prices and global rig count. 2021 revenue was close to 2020. In 2022 the company is expected to have over $1.9M in revenues, down slightly from 2021. Owner willing to assist with the transition of the business to new ownership and original founders are still employed in the company. The business is known for sourcing hard to find replacement parts worldwide. Business is ideal for a strategic buyer who is looking to expand existing operations to the area with an established staff or an owner with upstream experience.

The seller leases a 3,500 square foot office & warehouse facility. 1,080 square feet of the facility is air conditioned. The facility is in an office park and near major oil industry players including Baker Hughes, National Oil Well, Exxon, and others. The lease began August 1, 2019, for a period of 6 years. The base rent is $3,835.42 per month effective August 1, 2022, with small incremental increases annually until its expiration in 2025. The assignment will require the landlord’s approval. The selling price includes $100,000 of inventory.

The business was first established in 2006 as a partnership. In 2021 the two partners sold the business but remain in the business to help continue the success of the business. The new owner of the business works with the original founders on a part time basis. He has now been recruited into a senior executive job at another company outside of Texas and does not have the time to continue the oversight of the business. Therefore, he has chosen to sell the business.

As in any O&G service business revenue is impacted by the price of oil. Sales revenue for this company peaked at approximately $5 Million in 2012 / 2013 when the price of oil exceeded $100 per barrel and the worldwide rig count exceeded 3,500.

This company has the capacity to continue to grow. The business has an excellent location, global reach, global clientele, and a strong industry reputation. The acquisition of 2-3 new drilling contractors or expanding the product line can result in a dramatic increase in sales and earnings. This opportunity is ideal for a strategic buyer who is looking for entry into the oil & gas arena with a turnkey operation, who will capitalize on what the business has to offer:
o Talented, loyal team with tenure
o Name recognition and respect

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Reason for Selling:

Relocation

Additional Details:

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