Saltire Energy acquired by Drilling Tools International in multi-million pound deal

Aberdeen-based Saltire Energy has been acquired by the United States firm Drilling Tools International Corp in a transaction described as a multi-million pound deal. The acquisition marks a significant milestone for the Scottish company, which is celebrating its 40th year in business. Mike Loggie, the founder and chief executive officer of Saltire, characterised the agreement as a proud day for the firm, its employees, and his family. He emphasised that the local ties of the business would be preserved, noting that his family remains invested in the company for the long term.

The newly combined business released a statement indicating that the deal will allow Saltire’s established product bases across the North Sea, the Middle East, and Asia to expand. The acquisition is expected to accelerate Drilling Tools International’s tools and technology into new growing international markets. The statement highlighted that the two businesses are highly complementary, pledging to create a considerably larger offering for the customer base with deep industry knowledge and expertise globally. It was noted that the transaction would create clear cross-selling opportunities, leveraging the strengths of both entities to serve a broader range of clients.

Loggie stated that the company had become a trusted partner to demanding operators worldwide, a credit to the expertise and commitment of its staff. He explained that the search for a partner focused on exceptional service, proven reliability, and technical excellence led to the agreement with Drilling Tools International. Loggie confirmed that the Saltire founders will remain significant shareholders in the combined company. He assured customers that they could expect the same people and trusted service they have always relied on, now backed by the global platform and technology offerings of Drilling Tools International. The management team expressed excitement about building on the strong reputation of the combined entity to create new opportunities for customers, employees, and partners.

Wayne Prejean, chairman and chief executive officer of Drilling Tools International, welcomed the deal, describing Saltire as a natural fit for his firm. He noted that both companies rent mission-critical downhole tools that operators depend on. Prejean highlighted that Saltire has established relationships across the North Sea, the Middle East, and other key eastern hemisphere markets. He stated that with limited customer overlap, Saltire nearly doubles the international exposure of Drilling Tools International. Prejean added that the combined company is expected to generate significant free cash flow, providing a clear path to reduce debt quickly. He emphasised the shared conviction that the businesses are stronger together and that meaningful value creation lies ahead.

Drilling Tools International designs, engineers, manufactures, and provides a rental-focused offering of tools for onshore and offshore horizontal and directional drilling operations. Saltire, founded in 1986, is a specialty rental provider of drilling tubulars, downhole and bottom hole assembly tools, and pressure control equipment. It maintains operating bases in the United Kingdom, Norway, the United Arab Emirates, Singapore, and Malaysia. The company’s rental fleet is deployed to customers around the eastern hemisphere, and it has built long-standing relationships with tier one exploration and production operators, drilling contractors, and service companies.

It is understood that management hopes to operate on a business as usual basis following the deal. Saltire has close links to the local community in Aberdeen and launched the Saltire in the Community Programme in 2007. This initiative aims to create life-changing opportunities for disadvantaged youth and has seen over eight million pounds donated to local and international causes since 2016. Loggie, as honorary patron of the Aberdeen charity Befriend a Child, was recognised for the company’s support following a total of one million pounds donated over five years. The company also continues to focus on the impact sport plays in the lives of young people as the official partner of the Scottish Rugby Union since 2021.

Upon closing, Prejean will continue to serve as chairman and chief executive officer of Drilling Tools International. Loggie and all members of Saltire’s management team will remain with the combined company. The company will continue to trade its common stock on the Nasdaq Capital Market under the symbol DTI. Saltire was represented by financial advisors Piper Sandler Ltd and legal advisors Pinsent Masons LLP.