Drilling Tools International entered into a definitive business combination agreement with ROC Energy Acquisition at an enterprise value of approximately $319 million, which equates to 5.5x projected 2023 adjusted EBITDA of $58 million.
If the deal passes a shareholder vote, Drilling Tools would list on the Nasdaq under the new ticker DTI.
The transaction is expected to provide net cash proceeds of up to approximately $217 million, including approximately $209 million from ROC’s trust account, before any redemptions, and $45 million of cash from a common stock PIPE, which is expected to include participation by Fifth Partners, an affiliate of ROC’s sponsor.
Hicks Equity Partners and other existing DTI shareholders will reinvest over 95% of their equity holdings into the combined company.
Headquartered in Houston, with roots dating back to 1984, DTI manufactures and provides a differentiated, rental-focused offering of tools used for horizontal and directional drilling. DTI has been majority owned by an affiliate of Hicks Equity Partners and led for almost 10 years by CEO Wayne Prejean. Read more.
