Published: August 13, 2024 | Share This

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Dril-Quip and Innovex Downhole Solutions have entered into a definitive agreement under which Dril-Quip and Innovex will merge in an all-stock transaction to create a unique energy industrial platform.

The combination brings together the two companies’ complementary and curated product portfolios, best-in-class safety, service quality, global infrastructures, and customer relationships. With a large suite of highly engineered technologies, the combined company will provide customers with innovative solutions for both onshore and offshore applications, driving a more stable and diverse revenue mix.

The combined company is expected to derive approximately 56 percent of its revenue from the international and offshore markets and approximately 44 percent from the North American onshore markets (U.S. and Canada).

“I’m excited for the opportunities this transaction will provide Dril-Quip’s stakeholders. This transaction is aligned with the growth strategy we have been pursuing and will advance our position as a leading developer and provider of highly engineered and innovative equipment, services, and technologies for the global oil and gas industry,” said Dril-Quip President and Chief Executive Officer Jeffrey Bird.

“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,” added Bird.

“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,” said Innovex Chief Executive Officer Adam Anderson.

“This combination creates a scaled enterprise with a long history of value-added product development. In addition, the two companies possess unique strengths which we believe will drive meaningful revenue pull-through in coming years in the most important oil and gas producing regions globally,” said John Lovoi, Dril-Quip’s chairman of the board.

COMPANY LEADERSHIP AND GOVERNANCE

Upon closing of the transaction, Innovex chief executive officer Adam Anderson will become chief executive officer of the combined company and will join its board of directors. Kendal Reed, current chief financial officer of Innovex, will serve as chief financial officer of the combined company. The remainder of the combined company’s leadership team is expected to include executives from both Dril-Quip and Innovex.

Upon closing, the board of directors of the combined company will consist of nine directors, comprising four independent directors from the current Dril-Quip Board, four directors from the current Innovex board, and chief executive officer Adam Anderson, with John Lovoi, Dril-Quip’s current chairman of the board, serving as chairman of the combined company’s board.

Immediately following the completion of the transaction, the name of the combined company will change to Innovex International, Inc.

Upon closing of the transaction, Dril-Quip stockholders will own approximately 52 percent and Innovex stockholders will own approximately 48 percent of the combined company.

The transaction has been approved by the boards of directors of both companies and is expected to close in the third quarter of 2024. The closing of the transaction is subject to customary closing conditions including regulatory approval and approval by Dril-Quip’s stockholders.

Dril-Quip is a leading developer, manufacturer, and provider of highly engineered equipment and services for the global offshore and onshore oil and gas industry.

Innovex designs, manufactures, and installs mission-critical drilling and deployment, well construction, completion, production, and fishing and intervention solutions to support upstream onshore and offshore activities worldwide. Innovex combines best-in-class engineering expertise with a unique blend of conventional, innovative, and proprietary technologies including WearSox® deepwater centralization products, SwivelMASTER® deployment technology, and dissolvable frac plugs, QCI artificial lift technologies, and a full suite of fishing tools. The company is headquartered in Houston, Texas with sales, operations and service locations throughout North America, Latin America, Europe, the Middle East, and Asia.

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