Dril-Quip Agrees To Buy TIW Corp. For $143 Mln - Quick Facts

(RTTNews) - Dril-Quip Inc. (DRQ), a manufacturer of offshore drilling and production equipment, on Monday said it has agreed to acquire TIW Corp. for approximately $143 million, subject to closing adjustments.

The transaction is subject to regulatory approvals and other customary closing conditions. The deal would close during the fourth quarter of 2016.

Texas-based TIW is a manufacturer of consumable downhole products for the global oil and gas market. It provides liner hanger systems and related equipment and services worldwide.

TIW, which recorded peak revenues of about $140 million in 2014, expects revenues for 2016 between $60 million and $70 million, and for 2018 between $80 million and $100 million. by 2018. EBITDA margins are expected to be similar to Dril-Quip's margins once synergies are realized.

TIW is being acquired on a debt-free, cash-free basis and Dril-Quip intends to fund the consideration with cash on hand. Dril-Quip anticipates synergies to be realized from this transaction, primarily driven by cost efficiencies as well as expanded sales opportunities.

Blake DeBerry, Dril-Quip's President and Chief Executive Officer, said, "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."

Evercore served as Dril-Quip's exclusive financial advisor and PPHB served as TIW's exclusive financial advisor for this transaction.