DTI agrees to buy Saltire Energy in $80M cash and stock deal

Drilling Tools International Corp. (NASDAQ: DTI) has signed a definitive agreement to acquire Saltire Energy Limited and Foxley Energy Limited, an Aberdeen-based provider of rental drilling tools, for approximately $80 million in cash and 17.4 million shares of DTI common stock, subject to customary closing adjustments.

Founded in 1986, Saltire operates bases in the United Kingdom, Norway, the United Arab Emirates, Singapore and Malaysia, serving customers across the North Sea, Middle East and Asia Pacific. The company provides rental drilling tubulars, downhole and bottom hole assembly tools, and pressure control equipment.

Based on management estimates derived from third-quarter 2026 performance data, Saltire is expected to generate run-rate 2026 revenue of approximately $50.4 million, Adjusted EBITDA of approximately $22.5 million, representing a 45% Adjusted EBITDA margin, and Adjusted Free Cash Flow of $15.8 million.

DTI said the transaction is expected to increase its Eastern Hemisphere revenue contribution from approximately 18% of standalone revenue in the second quarter of 2026 to approximately 40% of pro forma revenue after closing. DTI plans to fund the cash portion through new debt financing and borrowings under its existing credit facility.

Upon closing, the sellers, including Saltire founder Mike Loggie and the Loggie family, are expected to own approximately 30% of DTI common stock. The shares will be subject to lock-up arrangements. Loggie and Saltire's full management team will remain with the combined company.

Wayne Prejean, DTI's Chairman and Chief Executive Officer, said the transaction is expected to be accretive to Adjusted EBITDA margin and Adjusted Free Cash Flow per share in the first year following closing.

The transaction, which requires approval from DTI stockholders and customary regulatory clearances, is expected to close in the first quarter of 2027. DTI intends to file a registration statement on Form S-4 with the U.S. Securities and Exchange Commission. Evercore advised DTI, while Piper Sandler Ltd advised Saltire.

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