Innovex Completes $90 Million Sale of Dril-Quip Eldridge Facility, Texas
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Innovex International has closed on the sale of its facility in Houston, Texas.
The final sale price for the property was $90 million. Innovex has also entered into a short-term lease of the property following the closing of the sale, which extends through December 31, 2025, at a rate of $650,000 per month. The short-term lease allows for the completion of ongoing facility consolidation initiatives, ensuring no disruption to customer deliveries.
“This sale is a meaningful milestone in our transformation journey. This step reshapes our operating footprint: by exiting Eldridge, we are reducing our square footage dedicated to Houston Subsea operations by nearly 80 percent. We expect this dramatic consolidation to lower costs, simplify operations, and drive efficiencies across the organization,” said Adam Anderson, CEO of Innovex.
“We view this outcome as a powerful combination of financial strength and operational improvement, fully aligned with our strategy of maintaining a lean, flexible cost structure and a conservative balance sheet to capture opportunities across industry cycles,” added Anderson.
“The proceeds from the Eldridge sale will further strengthen our balance sheet. This transaction is also a critical step in our efforts to expand Adjusted EBITDA margins toward our long-term aspiration of 25 percent. We have multiple methods to deploy this capital to create sustained value for shareholders — including a robust pipeline of strategic M&A opportunities and our $100 million share repurchase authorization, which still has over $90 million of capacity remaining,” said Kendal Reed, CFO of Innovex.
Innovex International is a Houston-based company established in 2024 following the merger of Dril-Quip and Innovex Downhole Solutions. Their comprehensive portfolio extends throughout the lifecycle of the well; and innovative product integration ensures seamless transitions from one well phase to the next, driving efficiency, lowering cost, and reducing the rig site service footprint for the customer. With locations throughout North America, Latin America, Europe, the Middle East and Asia, their team is readily available with technical expertise, conventional and innovative technologies, and ever-present customer service.
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