DTI signs $80 million Saltire acquisition deal

• Drilling Tools International (NASDAQ:DTI) signed a definitive agreement to acquire Saltire Energy and Foxley Energy for about $80 million in cash plus 17.4 million shares.
• The transaction is expected to close in the first quarter of 2027, subject to regulatory and shareholder approvals.
• DTI said the deal would increase Eastern Hemisphere revenue to about 40% of post-close revenue from roughly 18% currently.

Drilling Tools International (NASDAQ:DTI) signed a definitive agreement to acquire Saltire Energy and Foxley Energy for approximately $80 million in cash and 17.4 million DTI shares.

The transaction is expected to close in the first quarter of 2027, subject to regulatory approvals, DTI stockholder approval and customary closing conditions.

DTI said it plans to use debt financing for the cash portion of the purchase price, while the equity consideration will give the sellers a significant ownership position.

The company stated that Eastern Hemisphere revenue is expected to increase to approximately 40% of post-close revenue from about 18% of standalone second-quarter 2026 revenue.

DTI said the combination is expected to improve adjusted EBITDA margins and adjusted free cash flow per share in the first year after closing.

The sellers, including the Loggie family, are expected to own approximately 30% of Drilling Tools International after the transaction closes.

The acquisition would expand DTI’s Eastern Hemisphere operations and increase the share of revenue generated outside its existing core markets.