Investment Case Study: WellMark
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.
- 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%.