Drilling Tools Company Goes International with Acquisition
Directional Rentals Inc., a Houston-based manufacturer and provider of drilling tools for the onshore and offshore oil and gas industry, has taken up a new strategy and a new name.
With the private equity backing of Dallas-based Hicks Equity Partners, Directional Rentals recently acquired Lafayette, La.-based Reamco Inc. for an undisclosed price. The addition of Reamco will not only give the company additional manufacturing, maintenance and repair capacity, but it will also expand its international footprint.
To better reflect this change, the company decided to change its name to Drilling Tools International Inc.
The company’s initial international focus will be on expanding manufacturing and repair operations in Europe and the Middle East, CEO Wayne Prejean said in an email. The company hopes to shorten delivery times to customers operating in these areas.
Since Hicks Equity Partners acquired Directional Rentals in 2012, the company has been on a rapid expansion plan. In Houston, this has included opening a new operational headquarters, which includes a 40,000-square-foot repair and manufacturing shop and 6.2 acres of outdoor yard and logistics space. The facility opened in September.
With the Reamco acquisition, Drilling Tools will have eight U.S. locations that will serve companies in local and international markets. And, with more resources from Reamco, Prejean said he is targeting further expansion in the deep water drilling area.
Bracewell & Giuliani LLP served as Drilling Tools’ legal counsel, and KPMG provided the company with accounting and tax advice in the deal.