Drilling Tools International entered into a definitive agreement to acquire Saltire Energy Limited and Foxley Energy Limited. The consideration consists of approximately $80 million in cash and 17.4 million shares of DTI common stock, subject to customary adjustments.
The transaction is expected to close during the first quarter of 2027.
Saltire is an Aberdeen-based rental provider of drilling tubulars, downhole and bottom-hole assembly tools, and pressure-control equipment.
The company operates in the U.K., Norway, United Arab Emirates, Singapore, and Malaysia and serves customers across the North Sea, Middle East, and Asia-Pacific markets.
Saltire is expected to generate approximately $50.4 million of run-rate 2026 revenue, approximately $22.5 million of adjusted EBITDA, and approximately $15.8 million of adjusted free cash flow.
Its estimated adjusted EBITDA margin is approximately 45%.
The transaction is expected to increase the Eastern Hemisphere’s contribution to DTI revenue from approximately 18% on a standalone basis to approximately 40% of pro forma revenue.
DTI also expects cross-selling opportunities for its ClearPath and Drill-N-Ream technologies while adding Saltire’s drilling jars and pressure-control equipment to its broader product portfolio.
The acquisition is expected to be accretive to adjusted EBITDA margin and adjusted free cash flow per share during the first year following closing.
The Loggie family and other sellers are expected to own approximately 30% of DTI following completion of the transaction.
DTI expects to fund the cash portion through new debt financing and borrowings under its existing credit facility.
Evercore served as financial advisor to DTI.
KEY QUOTES:
“Saltire is a natural fit for DTI. Like us, Saltire rents the mission-critical downhole tools operators depend on, and it does so in the attractive international markets where we have long sought a scaled presence.”
Wayne Prejean, Chairman and Chief Executive Officer of Drilling Tools International
“As we thought about Saltire’s next chapter, we weren’t looking for an exit. We wanted a partner that shares our focus on exceptional service, proven reliability and technical excellence.”
Mike Loggie, Founder and Chief Executive Officer of Saltire
