Company History
The original part of the company, Smith Bits, grew out of a blacksmith shop in the small town of Whittier, California, in 1902. It was there, at the age of 20, that Herman C. Smith became the right man in the right place at the right time: oil was discovered nearby and the local drilling operators needed their fishtail bits sharpened. Smith had the skills to do the job, but being a curious sort, began to tinker. Using his knowledge of metals, he modified and improved oilfield tools, designing and constructing new tools on demand. Over the ensuing 80-some years, Smith’s humble shop grew into a major operation specializing in drill bits, heavyweight collars and drill pipe, with corporate headquarters in Houston.
In the mid-1980s, business faltered due to declining oil prices and the loss of a lawsuit against Hughes Tool (now part of Hughes Christensen). Under the leadership of then CEO Doug Rock, the company began to rebuild and reinvent itself in a campaign of growth through acquisition. Over the next 20 years, Smith acquired more than 80 companies, the largest of which was W-H Energy purchased in 2008, itself a conglomerate of more than a dozen businesses. During this time, Smith also relocated it's offices from Irvine, California to Houston, Texas.
The strategy worked. Smith International grew into a global, diversified Fortune 500 company that had three main operating segments: M-I SWACO, a 60-40% joint venture with Schlumberger; Wilson Distribution, one of the two largest energy industry supply chain solutions businesses in North America; and, as of last year, Smith Oilfield. The latter encompasses Smith Bits, Smith Services and all of the acquired W-H Energy businesses, the majority of which have retained their original names and identities.
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