Dril-Quip buys TIW Corporation for $143M
Oilfield services company Dril-Quip has entered into an agreement to acquire TIW Corporation, a 100-year old manufacturer of consumable downhole products for the global oil and gas market, for approximately $143 million.
TIW provides liner hanger systems and related equipment and services worldwide and is based in Houston, Texas.
Blake DeBerry, Dril-Quip’s President and Chief Executive Officer, remarked, “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.”
DeBerry added: “TIW is a market leader in the liner hanger business and we are particularly excited about its expandable liner hanger technology that is frequently utilized in deepwater or high-pressure/high-temperature environments.”
Steve Pearce, President of TIW, commented, “I believe this transaction will positively position our business for further expansion.”
Pearce also added: “Dril-Quip’s wider product offering and broader international footprint should allow for long-term growth of our liner hanger business.”
Dril-Quip said that 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.
TIW reached peak revenues of approximately $140 million in 2014. Revenue is expected to increase to between $80 million and $100 million by 2018.