Sixty Six Oilfield Services Inc. said July 10 it completed the acquisition of Five Star Rig and Supply Inc., an Oklahoma-based drilling rig and supply parts company, in an all-stock transaction.

In April, Sixty Six said it had signed a letter of intent to acquire Five Star with plans to raise up to $20 million in debt and expansion capital. The terms of the transaction weren't disclosed.

Five Star was founded in 1983 as a local oilfield supply company but has evolved over the years to become a manufacturer of oilfield equipment such as centrifugal pumps, wireline machines, bug blowers and FC-1000 and other 1000 HP mud pumps.

Jason Clayton, president and majority owner of Five Star, said in April the company had been looking to expand its footprint in the drilling supply market.

By merging with Sixty Six, Five Star will now enter into the public market, enabling “more opportunities for us in global distribution and give us access to the capital markets,” Clayton said in a statement.

Sixty Six is a third-generation heavy oilfield equipment company founded by J.C. Houck in Oklahoma in 1959. The company is led by Dave T. Ho, an experienced entrepreneur who was elected to serve as Sixty Six's president and CEO in February.

“The acquisition of Five Star is a momentous day in the history of the company... We are excited that our opportunity with the upcoming rig sales may increase our gross revenues as much as seven-fold in 2018,” Ho said in a statement.

The new unified company will remain in Oklahoma City and will have a 2017 combined revenue of $12.6 million with gross profits of $6.2 million.

Following completion of the merger, the company has started to identify potential acquisition targets to add to its portfolio. Plans include registration of the company's stock and capital raise of up to $40 million for the purchase and resale of the drilling rigs.

Ho said the company is preparing to uplist to a national exchange in the quarter, which will be a “critical part of the capital raise we are conducting to finance the rig deals for the second half the year and beyond.”