Date of Acquisition: April 16, 2007
Selling Entity: Idea Inc.
Virginia, Minnesota
Buying Entity: Idea Drilling LLC
Company Background: Idea Inc., a privately held company, was founded to provide exploration services and deep core sampling for the non-ferrous (copper, nickel, platinum) mining industry in northern Minnesota. At the time of sale, Idea had six drill rigs in operation.
Situation: In 2006, Idea’s President/Founder and its principal owners decided to put the company up for sale. President/Founder was 67 years old and interested in retirement. President/Founder was willing to stay on-board with the acquiring entity for up to two years after the sale to assist with the transition of day to day operations to a new management team.
President/Founder desired a Buyer which would reward existing “junior” management with the ability to purchase ownership interests and would continue to invest in the company’s growth.
Outcome: Stew Stender of Stewart Capital Partners and 2 other partners formed Idea Drilling LLC to acquire Idea Inc. Upon the closing of the sale, Stew Stender became Chairman of Idea Drilling LLC. Idea has continued to grow and now has 20 drill rigs in operation (versus six at the time of acquisition). The Founder/President has continued to enjoy working with the new owners and is still very active six years after the sale closed. The company has transitioned to a professional management team with an active and supportive board of directors. Company is growing via aggressive organic growth in northern Minnesota, the Upper Peninsula of Michigan, Wisconsin and other Southeastern & Western states. Idea Drilling is also continually scouting for synergistic drilling companies to acquire.