CABLE ANNOUNCES ACQUISITION OF LUFT MACHINE & SUPPLY, INC.
January 31 2011
CABLE ANNOUNCES ACQUISITION OF LUFT MACHINE & SUPPLY, INC.
Sterling, CO Becomes New Home of Frontier’s Manufacturing Center
Sterling, CO, Jan. 28, 2011 – Frontier Energy Group, Inc., parent company of Sterling, CO-based Cable, Inc., today announced that it has completed the acquisition of Luft Machine & Supply, Inc., also based in Sterling. In addition to continuing to cater to Luft Machine’s existing agriculture clientele, this acquisition fits within a broader strategy to move Frontier’s oilfield manufacturing center to Sterling, CO.
Established in 1976, Luft Machine is a precision machining and fabrication firm that builds and repairs farm, oilfield, & other industrial equipment. They are capable of contract manufacturing, assembly, welding, and machining & milling. They also work internationally for Original Equipment Manufacturers (OEMs). Under the Frontier umbrella, Luft will continue its long tradition of designing & building farm and other industrial equipment.
“This presents an exciting opportunity for us,” said Allen Luft, founder of Luft Machine. “We look forward to using our equipment and facility to meet the growing needs of Frontier while maintaining our relationships which we have developed over the last 35 years with all of our loyal customers.”
The shop is located in the city of Sterling, in Northeastern Colorado, very near Cable, Inc.’s headquarters. The location means that Cable & Luft Machine can hire local talent in and around Sterling, Colorado, while ensuring a tight feedback loop between operations & manufacturing and other Colorado & North Dakota divisions within Frontier.
“Bringing Frontier’s manufacturing center to Sterling represents a key milestone in both Sterling and Frontier’s history that will lead to key economic growth for the region, including the opportunity for new jobs,” explains Rich O’Connell, Executive Director of the non-profit Logan County Economic Development Corporation. “This addition strengthens Sterling & Logan County as a center for oil and gas exploration, production, & distribution.”
Despite a tumultuous economy, Cable, Inc.’s business has continued to flourish. In just twelve months, Cable has experienced unprecedented organic & external growth. Last year, Cable acquired Western Wellhead of Grand Junction, CO. As the growth continues, the company is opening a new branch near Price, Utah, the first Cable location in Utah since the mid-80s. The new location will expand the total number of Frontier locations in the Rocky Mountain region to sixteen.
“The acquisition effectively leverages an ideal combination of engineering talent and the proven fabrication system Frontier needs to better serve our customers,” said Dan Eberhart, CEO of Frontier Energy Group. “Luft’s was founded as a family-focused company and we’re committed to continuing that. At Frontier we believe that this is a critical first step in building the kind of relationships with our customers and employees that will support our future growth plans & strategy.”
Frontier began discussions to acquire Luft’s last summer, when it was evaluating its future oilfield-equipment needs. Luft’s long-history of supplying Cable, Inc. top quality vehicles & equipment and its considerable room for expansion made it stand out from other companies.
After its purchase Luft Machine & Supply, Inc will become Luft Machine, LLC, a Frontier Energy Group, Inc. subsidiary. Paul Schrade, currently Vice President of Luft Machine & Supply, Inc., will become Operations Manager of the newly formed Luft Machine. He said that Luft’s will maintain the current employees and the senior management team will continue to provide the parts and service our customers have grown to expect.
For more information, please visit luftmachine.frontieregroup.com.
About Frontier Energy Group, Inc.
Frontier provides comprehensive oilfield services to oil & gas customers in the extended Rocky Mountain region. Frontier Energy Group, Inc. is the parent company of Frontier Wellhead & Supply, LLC with operational headquarters based in Watford City, ND. Together with Frontier Hot Oil, LLC., Frontier Pressure Testing, LLC (formerly Kodiak Stack Testing, LLC) in Williston, ND and Cable Inc. in Colorado, these companies provide a one-stop oilfield service company, including wellhead equipment sales & installation, frac equipment rental, wireline & slickline services, pressure testing, fishing & rental tools, and now includes oilfield fabrication. Frontier is dedicated to the growing needs of its 500 customers by growing both externally and organically that service ND, CO, WY, NE, MT, & now UT from 16 locations. To learn more about the company, please visit http://www.frontieregroup.com/.
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