HOUSTON and VERNAL, Utah - Drilling Tools International Corp. (NASDAQ: DTI) and Superior Drilling Products (NYSE:SDPI), Inc. (NYSE American: SDPI) have reached a definitive agreement for DTI to acquire SDP. The $32.2 million transaction, payable 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 bore conditioning tool into DTI's offerings, aiming to enhance operational efficiencies and lower costs. DTI's CEO, Wayne Prejean, expressed enthusiasm about the merger, anticipating manufacturing and distribution savings, and potential growth in the Middle East market.
Troy Meier, Chairman and CEO of SDP, also conveyed optimism, viewing the merger as an opportunity for growth and innovation, with benefits for stockholders and new opportunities for employees.
The transaction, unanimously approved by both companies' boards and a special committee of SDP's board, is part of DTI's broader strategy to consolidate the oilfield services rental tool industry and expand its global reach.
SDP's financial results for the fourth quarter and full year of 2023 will be announced separately and will not feature an earnings call due to the pending acquisition.
Legal and financial advisors for the transaction include Winston & Strawn LLP for DTI, Ewing Jones, PLLC for SDP, and Mayer Brown LLP for SDP's special committee. Financial advisory services were provided by Energy Capital Solutions, LLC for DTI and Piper Sandler & Co. for SDP's special committee.
The acquisition is subject to customary closing conditions, including regulatory approvals and SDP shareholder consent. Additional information regarding the transaction will be available in the forthcoming joint proxy statement/prospectus and other documents filed with the SEC.
This news is based on a press release statement.
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