Investment Case Study: WellMark

Company Information

Oklahoma City, Oklahoma

  • Founded in 1981,WellMark is a leading provider of a full line of liquid and pneumatic flow controls and valves for the oil and gas industry.
  • Late founder’s estate seeking liquidity for the family and a partner to steward the WellMark brand and legacy.
  • Platte River completed a buyout of WellMark in 2012 and sold the company to The Dover Corporation (NYSE: DOV) in July 2014.

Investment Thesis

  • Industry: Increasing demand for flow control products due to the growth in the oil and gas production market.
  • Opportunity: Invest in a leading family-owned company which had underinvested in new capital, systems, new products and sales.
  • Strategy: Accelerate an undermanaged, branded industry participant with capital, talented management, and Platte River’s industry network to expand the company’s revenues and market share.

Platte River Value Add

  • Recruited highly talented management team, accelerated new product development, invested in an enhanced sales force to penetrate underserved geographies, professionalized HR, accounting and management information systems.
  • Led cost reduction initiatives and the introduction of a new branding campaign.
  • In two years, WellMark was able to increase its revenue and profitability by 50%.
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