Drilling Tools International Corp. (DTI) has agreed to acquire Superior Drilling Products, Inc. (SDP) for about $32.2 million in cash and DTI stock, the two firms announced Thursday.
The transaction was unanimously approved by both companies’ boards of directors. It’s expected to close in the third quarter of this year.
DTI, a Houston-based oilfield services firm, has been exclusive distributor in North America of SDP’s patented Drill-N-Ream well bore conditioning tool since 2016, DTI CEO Wayne Prejean notes in a press release.
“By aligning our interests through this merger, we expect to deliver manufacturing and distribution savings,” Prejean says. “Importantly, we expect to drive rental revenue with the Drill-N-Ream in the Middle East by providing the scale and resources to help grow that business.”
Prejean adds that DTI sees the acquisition as further validation of its efforts to rapidly consolidate the oilfield services rental tool industry.
Troy Meier, chairman and CEO of Vernal, Utah-based SDP, says the move will help the company further penetrate the oil and gas industry both domestically and abroad. “We believe this transaction delivers compelling value to our stockholders and creates new opportunities for our employees as a part of a larger, growing enterprise,” he says. “We look forward to a seamless transition as we embark on this new chapter for SDP."
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