Dril-Quip has entered into an agreement to acquire TIW Corporation, a manufacturer of consumable downhole products for the oil and gas market, for approximately $143 million, subject to closing adjustments.
The Houston-based company provides liner hanger systems and related equipment and services.
Blake DeBerry, Dril-Quip’s president and chief executive officer, said, “We are pleased to include TIW Corporation as part of the Dril-Quip family, and look forward to significantly expanding our product offerings to our customers.
“TIW’s products and services fit squarely with and complement our current product offerings. In addition to its offshore market, TIW’s onshore presence, particularly in the Middle East and South America, will provide Dril-Quip with more market opportunities.”
Steve Pearce, president of TIW, added, “I believe this transaction will positively position our business for further expansion. Dril-Quip’ swider product offering and broader international footprint should allow for long-term growth of our liner hanger business.”
TIW is being acquired on a debt-free, cash-free basis and Dril-Quip intends to fund the consideration with cash on hand. The transaction is subject to regulatory approvals and other customary closing conditions. It is anticipated that the closing of the transaction will occur during the fourth quarter of 2016, Dril-Quip said.