Strategic acquisition enhances DTI's
product offerings and strengthens its presence in the North Sea,
European and African markets, leveraging Titan's customer
relationships and expertise
HOUSTON, Oct. 31,
2024 /PRNewswire/ -- Drilling Tools International
Corp., (NASDAQ: DTI) ("DTI" or the "Company"), a global oilfield
services company that designs, engineers, manufactures and provides
a differentiated, rental-focused offering of tools for use in
onshore and offshore drilling operations, as well as other
cutting-edge solutions across the well life cycle, today announced
that it signed a definitive agreement on October 29, 2024 to acquire Titan Tools Services
Ltd., a UK-based downhole tool rental company ("Titan"), for an
undisclosed sum.
"This strategic acquisition aligns perfectly with our global
growth strategy," said Wayne
Prejean, CEO of Drilling Tools International. "Titan's
strong presence in the UK North Sea, Europe and Africa will allow us to better serve our
international customers. By combining our expertise in downhole
drilling tools with Titan's commitment to service and support,
we'll be able to offer a more comprehensive suite of solutions to
the oil and gas and geothermal drilling industries worldwide.
"The combination of Titan and DTI not only expands our
geographical footprint but also enhances our technological
capabilities, positioning us as a leader in the evolving energy
landscape. We will be able to provide our customers with access to
an even wider array of products and services with the addition of
Titan," concluded Prejean.
Bruce Jepp, Managing Director of
Titan Tools Services, added, "Joining forces with DTI significantly
expands our global reach and enhances our ability to serve the oil
and gas and geothermal drilling industries worldwide. Once
complete, this transaction will allow us to leverage DTI's
extensive distribution network and technological expertise.
Together, we'll accelerate market adoption of tools like the
Drill-N-Ream® and Fixedblade® stabilizer, setting new industry
standards. Our shared commitment to technological advancement and
exceptional customer service will enable us to provide
comprehensive solutions, from project planning to completion,
ensuring our clients' success in an ever-evolving energy
landscape."
The transaction is expected to close in the first quarter of
2025, subject to customary closing conditions and regulatory
approvals.
About Drilling Tools International Corp.
DTI is a Houston, Texas based
leading oilfield services company that manufactures and rents
downhole drilling tools used in horizontal and directional drilling
of oil and natural gas wells. With roots dating back to 1984, DTI
now operates from 16 service and support centers across
North America and maintains 11
international service and support centers across the EMEA and APAC
regions. To learn more about DTI, please visit:
www.drillingtools.com.
Contact:
DTI Investor Relations
Ken Dennard / Rick Black
InvestorRelations@drillingtools.com
Forward-Looking Statements
This press release may include, and oral statements made from
time to time by representatives of the Company may include,
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Statements other than
statements of historical fact included in this press release are
forward-looking statements. The words "anticipate," "believe,"
"continue," "could," "estimate," "expect," "intends," "may,"
"might," "plan," "possible," "potential," "predict," "project,"
"should," "will," "would" and similar expressions may identify
forward-looking statements, but the absence of these words does not
mean that a statement is not forward looking. These forward-looking
statements include, but are not limited to, statements regarding
DTI and its management team's expectations, hopes, beliefs,
intentions or strategies regarding the future. In addition, any
statements that refer to projections, forecasts or other
characterizations of future events or circumstances, including any
underlying assumptions, are forward-looking statements. Forward
looking statements in this press release may include, for example,
statements about: (1) the demand for DTI's products and services,
which is influenced by the general level activity in the oil and
gas industry; (2) DTI's ability to retain its customers,
particularly those that contribute to a large portion of its
revenue; (3) DTI's ability to employ and retain a sufficient number
of skilled and qualified workers, including its key personnel; (4)
DTI's ability to source tools and raw materials at a reasonable
cost; (5) DTI's ability to market its services in a competitive
industry; (6) DTI's ability to execute, integrate and realize the
benefits of acquisitions, and manage the resulting growth of its
business; (7) potential liability for claims arising from damage or
harm caused by the operation of DTI's tools, or otherwise arising
from the dangerous activities that are inherent in the oil and gas
industry; (8) DTI's ability to obtain additional capital; (9)
potential political, regulatory, economic and social disruptions in
the countries in which DTI conducts business, including changes in
tax laws or tax rates; (10) DTI's dependence on its information
technology systems, in particular Customer Order Management Portal
and Support System (Compass) for the efficient operation of DTI's
business; (11) DTI's ability to comply with applicable laws,
regulations and rules, including those related to the environment,
greenhouse gases and climate change; (12) DTI's ability to maintain
an effective system of disclosure controls and internal control
over financial reporting; (13) the potential for volatility in the
market price of DTI's common stock; (14) the impact of increased
legal, accounting, administrative and other costs incurred as a
public company, including the impact of possible shareholder
litigation; (15) the potential for issuance of additional shares of
DTI's common stock or other equity securities; (16) DTI's ability
to maintain the listing of its common stock on the Nasdaq Stock
Market; (17) the conditions to the completion of the proposed
transactions, including obtaining regulatory approvals for the
transaction on the anticipated schedule or at all; (18) the closing
of the proposed transaction may not occur or could be delayed,
either as a result of litigation related to the transaction or
otherwise or result in significant costs of defense,
indemnification, and liability; (19) the risks that the cost
savings and other synergies from the transaction may not be fully
realized by DTI or may take longer or cost more to be realized than
expected; (20) the occurrence of any event, change, or other
circumstance that could give rise to the termination of the
definitive agreement relating to proposed transaction; (21) the
effect of the announcement or pendency of the proposed transaction
on Titan's ability to attract, motivate, or retain key executives
or employees, its ability to maintain relationships with its
customers, suppliers, and other business counterparties, or its
operating results and business generally; and (22) other risks and
uncertainties separately disclosed and described in filings and
potential filings by DTI with the Securities and Exchange
Commission (the "SEC"). Investors should carefully consider the
risks and uncertainties described in DTI's annual report on Form
10-K filed March 29, 2024 (the
"10–K"). Such forward-looking statements are based on the beliefs
of management of DTI, as well as assumptions made by, and
information currently available to DTI's management. Actual results
could differ materially from those contemplated by the
forward-looking statements as a result of certain factors detailed
in the 10-K. All subsequent written or oral forward-looking
statements attributable to the Company or persons acting on its
behalf are qualified in their entirety by this paragraph.
Forward-looking statements are subject to numerous conditions, many
of which are beyond the control of each of DTI, including those set
forth in the Risk Factors section of the 10-K. The Company
undertakes no obligation to update these statements for revisions
or changes after the date of this release, except as required by
law.
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SOURCE Drilling Tools International Corp.