Blackstone’s Acquisiton of a controlling, majority interest in Ulterra


Kirkland & Ellis LLP counseled Blackstone Energy Partners on its binding agreements to acquire a controlling, majority interest in Ulterra Drilling Technologies from affiliates of American Securities LLC.

Blackstone Energy Partners has 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 customization to producers across a wide range of basins and geological formations, driving industry leading performance and durability.

Kirkland advised Blackstone with a team including corporate partners Rhett Van Syoc (Picture) and Cyril Jones and associates Adam Garmezy, Leslie Vaughn, Andrew Lombardo and Daniel Cadis; tax partner Mark Dundon and associate William Dong; and debt finance partners Melissa Hutson, Lucas Spivey and Yuli Wang and associate Cecilia Liu.

Involved fees earner: Rhett Van Syoc – Kirkland & Ellis; Cyril Jones – Kirkland & Ellis; Adam Garmezy – Kirkland & Ellis; Leslie Vaughn – Kirkland & Ellis; Andrew Lombardo – Kirkland & Ellis; Daniel Cadis – Kirkland & Ellis; Mark Dundon – Kirkland & Ellis; William Dong – Kirkland & Ellis; Melissa Hutson – Kirkland & Ellis; Lucas Spivey – Kirkland & Ellis; Yuli Wang – Kirkland & Ellis; Cecilia Liu – Kirkland & Ellis;

Law Firms: Kirkland & Ellis;

Clients: Blackstone;

Author: Ambrogio Visconti