OILGEAR COMPANY (THE)

OILGEAR COMPANY (THE)

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Company Overview
The Oilgear Company is a private company engaged in the manufacture and distribution of hydraulic equipment and systems as well as electronic controls in the United States and abroad. The company was founded in 1921 and has its registered headquarters located in Milwaukee, Wisconsin.
Oilgear manufactures a vast range of hydraulic equipment and system and electronic controls for used in the mobile, civil, forging, sheet moulding composite, wood products, oil field, aerospace, and forming technologies industries. The company’s products include pumps, valves, flow meters, motors, manifolds, intensifiers, water and special fluids, and electronic pump controllers. In addition, it provides electronic products such as analog module rack control systems, mini-rack control systems, and AC amplifiers.
Oilgear provides fully-integrated manufacturing, service and training facilities in Australia, France, Germany, India, Italy, Japan, Korea, Mexico, Singapore, Spain, the United Kingdom and the United States, and sales engineering support in more than 50 countries. The company is committed to satisfy its customers by providing high quality products at the lowest possible cost.
Business Summary
The Oilgear Company (Oilgear) manufactures and distributes value engineered fluid power components and electronic controls for a range of industrial machinery and industrial processes. Its products primarily involve the flow, pressure, and condition control and measurement of liquids, which it refers to as fluid power. The Company provides technology in the design and production of fluid power components, systems and electronic controls. Oilgear’s product line includes hydraulic pumps, high-pressure intensifier pumps, valves, controls, cylinders, motors and fluid meters. Oilgear manufactures both radial and axial piston type hydraulic pumps in sizes delivering from approximately four gallons per minute to approximately 230 gallons per minute at pressures ranging up to 15,000 pounds per square inch. In December 2006, Oilgear was acquired by a group of investors led by Mason Wells Buyout Fund II, Limited Partnership, an affiliate of the Milwaukee-based private equity firm, Mason Wells.
Description and history
The Oilgear Company (Oilgear), incorporated in 1921, manufactures and distributes value engineered fluid power components and electronic controls for a range of industrial machinery and industrial processes. Its products primarily involve the flow, pressure, and condition control and measurement of liquids, which it refers to as fluid power. The Company provides technology in the design and production of fluid power components, systems and electronic controls. Oilgear’s product line includes hydraulic pumps, high-pressure intensifier pumps, valves, controls, cylinders, motors and fluid meters. In December 2006, the Company was acquired by a group of investors led by Mason Wells Buyout Fund II, Limited Partnership, an affiliate of the Milwaukee-based private equity firm, Mason Wells.

Oilgear manufactures both radial and axial piston type hydraulic pumps in sizes delivering from approximately four gallons per minute to approximately 230 gallons per minute at pressures ranging up to 15,000 pounds per square inch. The intensifier pumps are reciprocating pumps operating at pressures up to 60,000 pounds per square inch. The valves manufactured are pressure control, directional control, servo valves and prefill valves for pressures up to 15,000 pounds per square inch. The Company’s pumps and valves are controlled through the actions of manual, hydraulic, pneumatic, electric and electrohydraulic controls or control systems.

The Company’s principal products include piston pumps, motors, valves, controls, manifolds, electronics and components, reservoirs, skids, and meters. They are used in disparate industries, including primary metals, machine tool, automobile, petroleum, aerospace, civil, construction equipment, chemical, plastic, glass, lumber, rubber and food. The products are sold as individual components or integrated into high performance systems. Standard components, such as the Company’s hydraulic pumps, are sold direct to users through its distribution network. These items can be inventoried as finished goods, have short delivery times and do not have progress billings. Oilgear recognizes revenue on these products as they are shipped to its customers.

The contracts for applications typically require custom engineered solutions that meet customer specified requirements. These construction type contracts take months and sometimes years to engineer, manufacture, assemble and install at its customer’s specified location. These contracts require progress payments. The revenue for these contracts is recognized on a percentage-of-completion method of accounting, which compares actual costs incurred on a contract to the estimated total contract cost developed at contract proposal and reviewed and updated monthly by the Company’s engineers and financial staff until the contract is closed. Oilgear supports responsive, quality aftermarket sales and flexible rebuilding services, which include exchange, factory rebuild and field repair service, along with customer training.

Domestic Segment

The Company’s products are sold in the United States and Canada by sales engineers, and by a network of approximately 59 distributors. Sales engineers are located in Milwaukee, Wisconsin; Hot Springs Village, Arkansas; Ionia and Novi, Michigan; Centerville and Leetonia, Ohio; Longview, Sanger and Rockwall, Texas; Cumming, Georgia; Trenton, South Carolina; Mead, Washington; Melbourne, Florida, and Ajax, Ontario, Canada.

European Segment

Oilgear’s products are sold in Europe directly through five wholly owned subsidiaries and by a network of approximately 14 distributors. Sales offices are located in Leeds, England; Paris, France; Hernani, Spain; Hattersheim, Germany, and Montirone, Italy.

International Segment

The Company conducts business outside of the United States, Canada and Europe by direct export sales, and through subsidiary operations providing sales, engineering, manufacturing and field services to customers worldwide. The Company’s 100% owned subsidiaries are located in Taren Point, Australia; Taejon City, Korea; Nagoya, Japan; Pachuca, Mexico; Bangalore, India, and Campinas, Brasil. It also has a 49% owned joint venture, Oilgear Towler Polyhydron Pvt. Ltd, located in Belgaum, India, and a 58% owned joint venture operation located in Taipei, Taiwan, with both companies serving customers with hydraulic products. The Company opened a sales office in Beijing, China, during the year ended December 31, 2005. Oilgear also sells its products through 12 distributors in selected countries.

Business Line
Engaged in the manufacture and distribution of hydraulic equipment and systems as well as electronic controls in the United States and abroad
Subsidiary
CLOVER INDUSTRIES, INC.
Advisor
KPMG LLP
IPO date
10/27/1993
US SIC Code
3511
Company Address
P.O. Box 343924
2300, South 51st Street
City province or state postal code
53219, MILWAUKEE, WI
Phone: +1 414 327 1700
Fax: +1 414 327 0532
Country address: UNITED STATES OF AMERICA
Website url: www.oilgear.com