Business
Drilling Tools International Corp. to Acquire Superior Drilling Products, Inc.
Acquisition furthers DTI's growth strategy to be a premier provider of quality solutions and services for the global oil & gas drilling industryIntegrating
About this update from Drilling Tools International Corporation
[{"type":"text","content":"Acquisition furthers DTI's growth strategy to be a premier provider of quality solutions and services for the global oil & gas drilling industryIntegrating SDP's patented Drill-N-Ream® well bore conditioning tool into DTI's fleet of technologies provides expanded geographic market potential and is anticipated to lower capital requirements and operating costs as well as improve operational efficienciesCombining SDP's manufacturing expertise into DTI's broad-reaching and well-established global sales channelsHOUSTON and VERNAL, Utah, March 7, 2024 /PRNewswire/ -- Drilling Tools International Corp. (\"DTI\") (NASDAQ: DTI) and Superior Drilling Products, Inc. (\"SDP\") (NYSE American: SDPI), today announced they have entered into a definitive agreement under which DTI agreed to acquire SDP for total consideration of approximately $32.2 million payable in cash and DTI stock. The transaction was unanimously approved by the Board of Directors of DTI and SDP and a Special Committee of the Board of Directors of SDP. The closing of the transaction is expected to occur in the third quarter of 2024.\n\nWayne Prejean, CEO of DTI, stated, \"We are excited to welcome the hardworking and dedicated workforce at Superior Drilling Products to the Drilling Tools International family. Since 2016, DTI has served as the exclusive North American distributor for the SDP's patented Drill-N-Ream® well bore conditioning tool. We believe that the Drill-N-Ream technology and SDP's best-in-class engineering, design, and manufacturing capabilities are a perfect fit and a natural extension of DTI's product and service offerings. By aligning our interests through this merger, we expect to deliver manufacturing and distribution savings. 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. \n\"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. The acquisition of SDP broadens our growth opportunities, both domestically and internationally, with a particular focus on expanding our presence in the Middle East. We are confident that this partnership will drive innovation and enhance our product offerings, and, as a result, we believe it wi...