Dril-Quip merging with Innovex to create energy industrial platform
Dril-Quip and Innovex have announced a definitive agreement, merging in an all-stock transaction to create an energy industrial platform. The deal combines the two companies’ complementary and curated product portfolios, service quality, global infrastructures and customer relationships. With a large suite of highly engineered technologies, the company will provide solutions for onshore and offshore applications, driving a more stable and diverse revenue mix.
The merger is expected to enable the growth of Innovex’s broad downhole tools portfolio across the large Canadian onshore market through Dril-Quip’s strong Canadian footprint and customer relationships. It will also leverage Dril-Quip’s leading subsea expertise, brand name and customer relationships to facilitate further market penetration of Innovex’s existing deepwater well construction portfolio
“The multi-decade legacy and strong reputation of Dril-Quip’s technology, brand and expertise, paired with the customer-centric, innovative and execution-oriented cultures of both companies will help us continue to manufacture and deliver innovative products and service to our customers and create opportunities for our employees,” said Dril-Quip President and CEO Jeffrey Bird. “Additionally, the complementary global scale and product breadth of the combined company will provide a strong platform for organic revenue growth, strong EBITDA margins and the potential for significant free cash flow generation to drive value for our stockholders.”
“We are bringing together the great traditions and capabilities of Dril-Quip with Innovex’s proven operating model. By empowering the combined organization using Innovex’s collaborative ‘No Barriers’ culture, we will unleash the capabilities of the combined company to create a unique energy industrial platform with durable margins, low capital intensity and the potential for superior returns on capital throughout industry cycles,” added Innovex CEO Adam Anderson.
