The transaction is expected to close in the third quarter, DTI said. (Source: Shutterstock/ Drilling Tools International/ Superior Drilling Products)
Oilfield service company Drilling Tools International (DTI) has agreed to acquire Superior Drilling Products Inc. (SDP) in a cash and stock deal valued at $32.2 million, according to a March 7 press release.
The deal comes roughly nine months after SDP engaged Piper Sandler to explore strategic alternatives including acquisitions, mergers and divestitures.
DTI, based in Houston, manufactures and rents drilling tools for natural gas wells. The company will add SDP, which also serves natural gas drilling customers with drilling tools, drill bits and other products. The acquisition will broaden DTI’s growth opportunities domestically and internationally, with DTI focusing on expanding its presence in the Middle East, said DTI CEO Wayne Prejean.
The merger will also deliver manufacturing and distribution savings, Prejean said.
“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 said. "We believe this accretive acquisition is further validation of the M&A framework and robust pipeline we have created to rapidly consolidate the oilfield services rental tool industry.”
Troy Meier, SDP's chairman and CEO, said the company has a well- established history with DTI.
“They are the right partner to help us to further penetrate the oil & gas industry with our highly effective well bore conditioning tool,” Meier said. “This strategic move represents a tremendous opportunity to leverage our combined resources and expertise to better serve our customers, drive innovation and accelerate our growth domestically and internationally.
The transaction was unanimously approved by DTI’s board and a special committee of SDP’s board.
The transaction is expected to close in the third quarter, DTI said.
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