Drilling Tools International to acquire Saltire Energy and Foxley Energy
Drilling Tools International Corp. (DTI) entered a definitive agreement to purchase Saltire Energy Limited and Foxley Energy Limited. The transaction consists of about $80 million in cash and 17.4 million DTI shares and is slated to close in the first quarter of 2027. Management says the deal will lift DTI’s Eastern‑Hemisphere revenue share to roughly 40% of pro‑forma sales and be immediately accretive to adjusted EBITDA margin and free‑cash‑flow per share.
Why it matters
The acquisition adds roughly $50.4 million of 2026 revenue and a 45% EBITDA margin to DTI, expanding its geographic diversification and expected to improve earnings metrics. The sellers will retain about 30% of the combined company, aligning interests with DTI’s shareholders.
Key facts
- 1Total consideration is approximately $80 million in cash and 17.4 million DTI common shares. prnewswire.com
- 2The transaction is expected to close in the first quarter of 2027. prnewswire.com
- 3Saltire is projected to generate run‑rate 2026 revenue of about $50.4 million and adjusted EBITDA of about $22.5 million, representing a 45% EBITDA margin. prnewswire.com
- 4DTI’s Eastern‑Hemisphere revenue contribution is expected to rise from roughly 18% to about 40% of pro‑forma revenue after the deal. prnewswire.com
- 5The Loggie family and other sellers will own approximately 30% of DTI common stock after closing. investing.com
- 6A 24‑month lock‑up agreement was signed with the sellers. tradingview.com
Open questions
- Material 4 reports cash consideration as £60.3 million ($81 million), which differs from the $80 million cash figure in other sources.
Summary written by AlphAI from 5 of 5 sources. Not investment advice. Figures are as stated by the linked sources.