Drilling Tools International Corp. (DTI) of Houston has acquired Vernal-based Superior Drilling Products Inc., according to a joint release from the companies. The purchase price was announced at $32.2 million, payable in cash and DTI stock. The closing of the transaction is expected to occur in the third quarter of 2024.
Drilling Tools International is an oilfield services company that manufactures and rents downhole drilling tools used in horizontal and directional drilling of oil and natural gas wells. Founded in 1993, Superior designs, manufactures, repairs and sells drilling tools, including its Strider oscillation drilling system technology.
“We are excited to welcome the hardworking and dedicated workforce at Superior Drilling Products to the Drilling Tools International family,” said Wayne Prejean, CEO of DTI. “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. 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.”
“We have a well-established history with the DTI team and believe they are the right partner to help us to further penetrate the oil and gas industry with our highly effective well bore conditioning tool,” said Troy Meier, Superior’s chairman and CEO. “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. 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. We look forward to a seamless transition as we embark on this new chapter for SDP.”