Dril-Quip, an oilfield services firm which achieved notoriety in north-east Scotland during the height of the Covid pandemic, is to be combined with fellow firm Innovex.
The new company, which will be called Innovex and headquartered in Houston, Texas, is expected to create $30m of annual synergy savings within 24 months, the pair said.
Both boards have approved the deal which is expected to close in the third quarter of this year, subject to regulatory approvals.
Dril-Quip has not yet responded to a request for confirmation on what implications there may be for the workforce, and specifically for those employed in north-east Scotland.
‘Whinge and Whine Culture’
Dril-Quip achieved notoriety in the north-east energy sector in 2021 when, as it was discussing headcount levels, bosses said in a leaked video that Aberdeen has a “whinge and whine culture”.
Jeff Bird, who remains CEO today, said Aberdeen had become “the lowest common denominator” in the video, which was recorded as the sector was facing the Covid pandemic and an oil price crash.
Over the course of 2020 and 2021, Dril-Quip was estimating it would make around 130 people redundant from its Dyce facility in Aberdeen.
Workers were told in 2021 that the firm’s subsea trees centre of excellence was being moved from Aberdeen to Houston.
It’s not clear how many people are now part of the Aberdeen operation for Dril-Quip, which had around 200 in 2020.
Dril-Quip merger with Innovex
Post-merger, Dril-Quip shareholders will own around 52% of the new company, and Innovex will hold 48%.
Innovex is owned by private equity group Amberjack Capital Partners which, at closing, will hold 43% of the combined firm.
Dril-Quip said the move will accelerate its expansion in the Canadian and US onshore markets, and increase its global scale across Saudi Arabia, Mexico, South America and the Asia-Pacific region.
Upon closing, Innovex CEO Adam Anderson will become chief executive of the combined firm.
Jeff Bird, current CEO of Dril-Quip, said: “The multi-decade legacy and strong reputation of Dril-Quip’s technology, brand and expertise, paired with the customer-centric, innovative and execution-oriented cultures of both companies will help us continue to manufacture and deliver innovative products and service to our customers and create opportunities for our employees.”