Fast-growing north-east firm Deep Casing Tools (DCT) has changed hands and is now under US ownership.
Houston-based Drilling Tools International (DTI) acquired it for an undisclosed sum.
The deal is expected to deliver new jobs at DCT, which professional services giant Deloitte names as one of the UK’s fastest growing technology companies in 2023,
It means an exit for the EV Private Equity, which was previously DCT’s largest shareholder.
Where is Deep Casing Tools based and what does it do?
DCT has its headquarters in Westhill, near Aberdeen.
The company specialises in the design, engineering and manufacture of a range of innovative downhole products for the oil and gas industry.
Since 2008 it has been supporting operators in the energy sector globally, including in Europe, the Middle East, Asia and the Americas.
In 2021 it received a £1.6 million funding boost from economic development quango Scottish Enterprise and EV Private Equity to help accelerate its international expansion.
EV Private Equity had ploughed £3.75m into the business three years earlier.
Chief executive David Stephenson told The Press and Journal DCT’s management, headcount and locations would “remain the same initially” following the US takeover.
He added: “The DTI acquisition will enable further growth and additional headcount before the end of 2024. It’s a very positive outcome for our business.”
850% revenue growth in four years
The Aberdeenshire firm currently employs 25 people across three locations.
It has five people working for it in Saudi Arabia and two in the United Arab Emirates, with the rest in Westhill.
DCT was ranked 36th in the 2023 Deloitte UK Technology Fast 50, a league table of the 50 fastest-growing technology firms in the UK. Rankings are based on percentage revenue growth over the past four years. DCT’s revenue grew 850% during this period.
New US owner ‘excited’ about future
On Wednesday, DTI announced results showing net income of £11.6m on revenue of £120.3m in 2023.
Chief executive Wayne Prejean said he was “excited” about prospects for the group, which last year merged with Roc Energy Acquisition Corporation and listed on the Nasdaq stock exchange in New York.
According to Mr Prejean, DTI is poised to benefit from “market-driven demand for our rental tools and services for the remainder of the decade”.
Welcoming DCT into the business, DTI’s CEO said: “We are excited to embrace the dedicated and talented team at Deep Casing Tools into the Drilling Tools International family.
“Deep Casing’s turbine tools are the only tools on the market that work effectively without any surface rotation, significantly reducing operational cost, risk and, most importantly, the number of rig days required to drill a well.”
He added, “With this acquisition of Deep Casing Tools, along with the pending acquisition of Superior Drilling Products, Inc, we continue to demonstrate our established M&A (mergers and acquisitions) framework and robust M&A pipeline that will allow us to selectively consolidate the oilfield services industry.
“Furthermore, the acquisition of Deep Casing Tools broadens DTI’s growth opportunities, both domestically and internationally, with a particular focus on expanding our presence in the Middle East.
Deep Casing Tools continues to push the boundaries of innovation and challenge conventional target depth technology.”
“We are confident that these partnerships will drive innovation, enhance our product offerings, and, as a result, increase shareholder value.”
Mr Stephenson said he looked forward to working with DTI’s leadership team “as we enter this next successful phase of our evolution”.
DCT’s boss added: “Deep Casing Tools continues to push the boundaries of innovation and challenge conventional target depth technology.
“Our long-term contracts for our portfolio of products in Central America, the Middle East and Asia Pacific, as well as the commercialisation of three new technologies in the UK, Europe and beyond, is an excellent fit with DTI’s existing capabilities and footprint.”
EV Private Equity senior partner Greg Herrera said: “It has been a privilege to work alongside the management team of Deep Casing Tools. I am sure that within DTI, the business will continue to blossom.”
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