International Oil & Gas Rig Parts Distributor

Business Overview:

TRANSWORLD BUSINESS ADVISORS OF HOUSTON. LISTING REF #76931-317753

Motivated Seller - International Oil & Gas Rig Parts Distributor

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. This business is not operating at the current time. The business has an amazing customer list and approximately $100,000 of inventory. 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 3500 square foot office & warehouse facility. 1080 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 $3,908.33 per month effective August 1, 2023, with no increases until its expiration July 31, 2025. If the buyer is interested there is an option to pursue an assignment that will require the landlord’s approval and an assignment fee. The selling price includes $100,000 of inventory.

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Property Features and Assets:

Monthly Rent: $3,908.00

Square Units (Foot, Meter): 3,500

Lease Expiration Date: July 30, 2025, 10:00:00 PM

Terms Options: 5Yr Renewal Options

Facilities:New Industrial Park about 5 years old.

FF&E Overview: Newer office furniture and warehouse racking system

FF&E General Condition: Good condition

Market Competition and Expansion:

Expansion: As in any O&G service business revenue is impacted by the price of oil and active rig counts worldwide.
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


Competition: The Offshore Oil and Gas Drilling market is anticipated to witness substantial growth from 2023 to 2031, with an impressive Compound Annual Growth Rate (CAGR) of 8.44%. By 2031, the market is expected to reach a valuation of 158.7 billion. This growth is driven by a multitude of factors, including the rising demand for Offshore Oil and Gas Drilling in various applications, continuous technological advancements, and the increasing penetration of Offshore Oil and Gas Drilling in emerging markets. Additionally, favorable government policies and substantial investments in research and development are projected to further enhance market growth. Consequently, the Offshore Oil and Gas Drilling market is set to become a cornerstone in its industry, driving innovation and presenting numerous opportunities for businesses and investors.
(https://www.linkedin.com/pulse/global-offshore-oil-gas-drilling-market-outlook-2031-0fwbf/)

Reason for Selling:

Additional Details:

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