HOUSTON and VERNAL, Utah – Drilling Tools International Corp. (NASDAQ: DTI ) and Superior Drilling Products, Inc. (NYSE American: SDPI) has entered into a definitive agreement for DTI to acquire SDP. The $32.2 million transaction, paid in cash and DTI stock, is expected to close in the third quarter of 2024.
The acquisition is seen as a strategic move to integrate SDP's patented Drill-N-Ream® well conditioning equipment into DTI's offering. DTI CEO Wayne Prejean was interested in the merger, looking for savings in manufacturing and distribution and potential growth in the Middle East market.
Troy Meier, president and CEO of SDP, sees the merger as an opportunity for growth and innovation, with benefits for shareholders and new opportunities for employees.
The transaction, which was unanimously approved by the two companies' boards of directors and a special committee of the SDP Group, is part of DTI's broader strategy to consolidate the oilfield service equipment rental industry and expand its global reach.
SDP's financial results for the fourth quarter and full year 2023 will be reported separately and will not have an earnings call due to the pending acquisition.
Legal and financial advisors on the transaction included Winston & Strawn LLP for DTI, Ewing Jones, PLLC for STB and Meyer Brown LLP for STB's Special Committee. Energy Capital Solutions, LLC is represented by DTI and Piper Sandler & Co. SDP has provided financial advisory services to the Special Committee.
The acquisition is subject to customary closing conditions, including regulatory approvals and SDP shareholder approval. For more information about the transaction, see the forthcoming joint proxy statement and other documents filed with the SEC.
This news is based on a press release.
This article was developed and translated with the support of AI and reviewed by one editor. For more information, see our T&Cs.
