Latest news with #Innovex
Yahoo
4 days ago
- Business
- Yahoo
Innovex Expands Platform With Highly Accretive Acquisition of Citadel Casing Solutions
HOUSTON, June 02, 2025--(BUSINESS WIRE)--Innovex International, Inc. (NYSE: INVX) (the "Company" or "Innovex") is pleased to announce that it has completed the acquisition of Citadel Casing Solutions, LLC ("Citadel"), leveraging its unique, energy industrial platform. This investment meets all the criteria of the Company's disciplined M&A framework, including a focus on single-use, highly engineered products that share the Company's "Big Impact, Small Ticket" value proposition. Founded in 2016 by a team of industry experts, Citadel is a leading provider of differentiated downhole technologies which are designed to improve its customers' economics by driving reduced cycle times through improved operational efficiencies. The acquisition is financially attractive even prior to expected synergies. The transaction values Citadel at approximately 3.8x LTM Adjusted EBITDA1 and is 8% accretive to Innovex's EPS2. Innovex anticipates realizing approximately $2 million of cost synergies within 3 months and anticipates further synergies longer term as the business is fully integrated. "We are excited to add another strong team and complementary set of products to Innovex's portfolio," said Adam Anderson, CEO of Innovex. "Citadel has successfully grown its business through-cycle by adhering to a culture which is in line with our 'No-Barriers' approach. Citadel's products drive efficiencies by reducing cycle times, and its TrenchFoot™ Wet Shoe technology increases reservoir access resulting in increased production for our customers. As a result of its technology centric approach, Citadel has outgrown the market over the last few years, and we expect this to continue over the next few years. This acquisition bolsters our leadership position in the cementing tool market in US Land and supports our efforts to grow market share in the offshore and international markets." "We are excited to accelerate our growth under the Innovex banner by tapping into its broad, complementary product portfolio and geographical exposure," said Todd Stair, CEO of Citadel. "The combination of our teams and technologies will enhance our ability to help operators deliver efficient wells, furthering our like-minded mission to help bring reliable and affordable energy to the world." "The acquisition of Citadel fits perfectly within our M&A framework," said Kendal Reed, CFO of Innovex. "Citadel's portfolio of Big Impact, Small Ticket products has allowed it to achieve rapid, profitable growth while delivering exceptional returns on capital. We were able to acquire Citadel at a favorable multiple and strong acquisition-level returns even before considering revenue and cost synergies. Importantly, the transaction is highly accretive to our earnings and cash flow per share. Given our strong balance sheet and cash flow generative business model, we were able to acquire Citadel in an all-cash transaction while maintaining an extremely conservative leverage profile and an active corporate buyback program. We expect this acquisition to drive ROCE3 well in excess of idle balance sheet cash, improving long-term returns for our shareholders." Advisors Akin Gump Strauss Hauer & Feld LLP served as legal advisor to Innovex. Piper Sandler served as exclusive financial advisor to Citadel, and Troutman Pepper Locke LLP served as Citadel's legal advisor. About Innovex Innovex International, Inc (NYSE: INVX) is a Houston-based company established in 2024 following the merger of Dril-Quip, Inc and Innovex Downhole Solutions. Our comprehensive portfolio extends throughout the lifecycle of the well; and innovative product integration ensures seamless transitions from one well phase to the next, driving efficiency, lowering cost, and reducing the rig site service footprint for the customer. With locations throughout North America, Latin America, Europe, the Middle East and Asia, no matter where you need us, our team is readily available with technical expertise, conventional and innovative technologies, and ever-present customer service. About Citadel Founded in 2016, Citadel was established to revolutionize casing technology through continuous innovation. Citadel's high-quality, reliable downhole tools are used globally, driving efficiency and performance in the Oil and Gas sector. By combining internal R&D with strategic partnerships, Citadel remains at the forefront of technological advancements in casing solutions. Non-GAAP Financial Measures Adjusted EBITDA is a non-GAAP financial measure. Innovex defines Citadel's Adjusted EBITDA as net income before interest expense, income tax expense, depreciation and amortization, deal costs and board retention agreements, net, further adjusted to exclude certain items which Citadel believes are not reflective of its ongoing performance or which are non-cash in nature. Citadel management used Adjusted EBITDA to assess the profitability of its business operations and to compare Citadel's operating performance to its competitors without regard to the impact of financing methods and capital structure and excluding costs that management believes do not reflect its ongoing operating performance. Adjusted EBITDA does not represent and should not be considered as an alternative to, or more meaningful than, net income or any other measure of financial performance presented in accordance with GAAP as measures of Citadel's financial performance. Innovex's computation of Citadel's Adjusted EBITDA may differ from computations of similarly titled measures of other companies. Innovex utilizes Return on Capital Employed ("ROCE") (a non-GAAP measure) to assess the effectiveness of its capital allocation over time and to compare its capital efficiency to its competitors. Innovex defines ROCE as Income from Operations, before acquisition and integration costs and after tax (resulting in Adjusted Income from Operations, after tax) divided by average capital employed. Capital employed is defined as the combined values of debt and stockholders' equity. Forward-Looking Statements Certain statements contained in this press release and oral statements made regarding the matters addressed in this release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Innovex's control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology including "may," "believe," "expect," "intend," "anticipate," "plan," "should," "estimate," "continue," "potential," "will," "hope" or other similar words and include the Company's expectation of future performance contained herein. These statements discuss future expectations or state other "forward-looking" information, including without limitation statements regarding the expected benefits of the acquisition. You are cautioned not to place undue reliance on any forward-looking statements, which can be affected by assumptions used or by risks or uncertainties. Consequently, no forward- looking statements can be guaranteed. These statements reflect management's expectations based on currently available information and involve significant risks, uncertainties and assumptions that may cause actual results to differ materially. Factors that may cause such differences include, but are not limited to, economic conditions and other factors noted in the Company's Annual Report on Form 10-K, any Quarterly Reports on Form 10-Q and the other documents that the Company files with the Securities and Exchange Commission. Innovex disclaims any duty to update and does not intend to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release, except as may be required by law. ________________________________________ 1 Citadel's LTM Adjusted EBITDA as of 04/30/2025. Adjusted EBITDA is a non-GAAP measure. A reconciliation of Citadel's LTM Adjusted EBITDA to Citadel LTM net income, the most directly comparable financial measures presented in accordance with GAAP, is outlined in the reconciliation table accompanying this release. 2 Reflects LTM as-reported net income for both Innovex and Citadel as of 03/31/2025. The net income amount does not give effect to costs, charges, synergies, or other similar items that could result from a combined company. The share count uses Innovex's outstanding share count as of 03/31/2025. As Citadel is a passthrough entity, Citadel did not incur any income tax expenses. As a combined company, income tax expenses would be expected. Therefore, for the purpose of calculating EPS, an assumed tax rate of 21% was used. 3 Return on Capital Employed ("ROCE") is a non-GAAP measure. Innovex International, Inc. Reconciliation of Citadel's Net Income to Adjusted EBITDA (in thousands) (Unaudited) CitadelLTM April 30, 2025 Revenue $ 71,965 Net Income $ 15,098 Interest expense 513 Income tax expense - Depreciation and amortization 2,600 Other expense/income - EBITDA $ 18,212 Deal Costs 185 Board Retention Agreements 64 Adjusted EBITDA $ 18,461 Net Income (Loss) % Revenue 21 % Adjusted EBITDA Margin1 26 % Note: Figures shown above reflect unaudited results. A quality of earnings analysis was conducted to verify the figures shown. (1) Underlying calculation is not rounded. View source version on Contacts Investor Relations Contact Avinash CuddapahSr. Director – Investor Relationsinvestors@ (346) 398-0000
Business Wire
4 days ago
- Business
- Business Wire
Innovex Expands Platform With Highly Accretive Acquisition of Citadel Casing Solutions
HOUSTON--(BUSINESS WIRE)--Innovex International, Inc. (NYSE: INVX) (the 'Company' or 'Innovex') is pleased to announce that it has completed the acquisition of Citadel Casing Solutions, LLC ('Citadel'), leveraging its unique, energy industrial platform. This investment meets all the criteria of the Company's disciplined M&A framework, including a focus on single-use, highly engineered products that share the Company's ' Big Impact, Small Ticket ' value proposition. "This acquisition bolsters our leadership position in the cementing tool market in US Land and supports our efforts to grow market share in the offshore and international markets.' Founded in 2016 by a team of industry experts, Citadel is a leading provider of differentiated downhole technologies which are designed to improve its customers' economics by driving reduced cycle times through improved operational efficiencies. The acquisition is financially attractive even prior to expected synergies. The transaction values Citadel at approximately 3.8x LTM Adjusted EBITDA 1 and is 8% accretive to Innovex's EPS 2. Innovex anticipates realizing approximately $2 million of cost synergies within 3 months and anticipates further synergies longer term as the business is fully integrated. 'We are excited to add another strong team and complementary set of products to Innovex's portfolio,' said Adam Anderson, CEO of Innovex. 'Citadel has successfully grown its business through-cycle by adhering to a culture which is in line with our 'No-Barriers' approach. Citadel's products drive efficiencies by reducing cycle times, and its TrenchFoot™ Wet Shoe technology increases reservoir access resulting in increased production for our customers. As a result of its technology centric approach, Citadel has outgrown the market over the last few years, and we expect this to continue over the next few years. This acquisition bolsters our leadership position in the cementing tool market in US Land and supports our efforts to grow market share in the offshore and international markets.' 'We are excited to accelerate our growth under the Innovex banner by tapping into its broad, complementary product portfolio and geographical exposure,' said Todd Stair, CEO of Citadel. 'The combination of our teams and technologies will enhance our ability to help operators deliver efficient wells, furthering our like-minded mission to help bring reliable and affordable energy to the world.' 'The acquisition of Citadel fits perfectly within our M&A framework,' said Kendal Reed, CFO of Innovex. 'Citadel's portfolio of Big Impact, Small Ticket products has allowed it to achieve rapid, profitable growth while delivering exceptional returns on capital. We were able to acquire Citadel at a favorable multiple and strong acquisition-level returns even before considering revenue and cost synergies. Importantly, the transaction is highly accretive to our earnings and cash flow per share. Given our strong balance sheet and cash flow generative business model, we were able to acquire Citadel in an all-cash transaction while maintaining an extremely conservative leverage profile and an active corporate buyback program. We expect this acquisition to drive ROCE 3 well in excess of idle balance sheet cash, improving long-term returns for our shareholders.' Advisors Akin Gump Strauss Hauer & Feld LLP served as legal advisor to Innovex. Piper Sandler served as exclusive financial advisor to Citadel, and Troutman Pepper Locke LLP served as Citadel's legal advisor. About Innovex Innovex International, Inc (NYSE: INVX) is a Houston-based company established in 2024 following the merger of Dril-Quip, Inc and Innovex Downhole Solutions. Our comprehensive portfolio extends throughout the lifecycle of the well; and innovative product integration ensures seamless transitions from one well phase to the next, driving efficiency, lowering cost, and reducing the rig site service footprint for the customer. With locations throughout North America, Latin America, Europe, the Middle East and Asia, no matter where you need us, our team is readily available with technical expertise, conventional and innovative technologies, and ever-present customer service. About Citadel Founded in 2016, Citadel was established to revolutionize casing technology through continuous innovation. Citadel's high-quality, reliable downhole tools are used globally, driving efficiency and performance in the Oil and Gas sector. By combining internal R&D with strategic partnerships, Citadel remains at the forefront of technological advancements in casing solutions. Non-GAAP Financial Measures Adjusted EBITDA is a non-GAAP financial measure. Innovex defines Citadel's Adjusted EBITDA as net income before interest expense, income tax expense, depreciation and amortization, deal costs and board retention agreements, net, further adjusted to exclude certain items which Citadel believes are not reflective of its ongoing performance or which are non-cash in nature. Citadel management used Adjusted EBITDA to assess the profitability of its business operations and to compare Citadel's operating performance to its competitors without regard to the impact of financing methods and capital structure and excluding costs that management believes do not reflect its ongoing operating performance. Adjusted EBITDA does not represent and should not be considered as an alternative to, or more meaningful than, net income or any other measure of financial performance presented in accordance with GAAP as measures of Citadel's financial performance. Innovex's computation of Citadel's Adjusted EBITDA may differ from computations of similarly titled measures of other companies. Innovex utilizes Return on Capital Employed ("ROCE") (a non-GAAP measure) to assess the effectiveness of its capital allocation over time and to compare its capital efficiency to its competitors. Innovex defines ROCE as Income from Operations, before acquisition and integration costs and after tax (resulting in Adjusted Income from Operations, after tax) divided by average capital employed. Capital employed is defined as the combined values of debt and stockholders' equity. Forward-Looking Statements Certain statements contained in this press release and oral statements made regarding the matters addressed in this release constitute 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Innovex's control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology including 'may,' 'believe,' 'expect,' 'intend,' 'anticipate,' 'plan,' 'should,' 'estimate,' 'continue,' 'potential,' 'will,' 'hope' or other similar words and include the Company's expectation of future performance contained herein. These statements discuss future expectations or state other 'forward-looking' information, including without limitation statements regarding the expected benefits of the acquisition. You are cautioned not to place undue reliance on any forward-looking statements, which can be affected by assumptions used or by risks or uncertainties. Consequently, no forward- looking statements can be guaranteed. These statements reflect management's expectations based on currently available information and involve significant risks, uncertainties and assumptions that may cause actual results to differ materially. Factors that may cause such differences include, but are not limited to, economic conditions and other factors noted in the Company's Annual Report on Form 10-K, any Quarterly Reports on Form 10-Q and the other documents that the Company files with the Securities and Exchange Commission. Innovex disclaims any duty to update and does not intend to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release, except as may be required by law.
Business Wire
25-04-2025
- Business
- Business Wire
Innovex International, Inc. Announces Divestiture of the Dril-Quip Eldridge Campus - a Significant Business Transformation Milestone - and Provides Business Update
HOUSTON--(BUSINESS WIRE)--Innovex International, Inc. (NYSE: INVX) (the 'Company' or 'Innovex') announced its entry into a definitive agreement to sell its facility located at 6401 North Eldridge Pkwy, Houston, Texas 77041 (the 'Property'). The sale price for the Property is $95.0 million, subject to adjustments, and the sale is expected to close in the third quarter of 2025. Innovex International, Inc. Announces Divestiture of the Dril-Quip Eldridge Campus - a Significant Business Transformation Milestone - and Provides Business Update As further described in the purchase and sale agreement (the 'Purchase Agreement') with BIG Acquisitions LLC (the 'Purchaser'), Innovex intends to enter into a short-term lease of the Property in connection with the sale to allow for completion of ongoing facility consolidation initiatives, ensuring no disruption to customer deliveries. The sale is subject to customary closing conditions. Adam Anderson, CEO of Innovex, commented, 'The sale of the Eldridge campus represents a significant milestone in our ongoing transformation of the Dril-Quip business. The expected proceeds from the sale of this facility represent approximately 9% of Innovex's current market cap and will further bolster the Company's existing net cash position. Further, as mentioned on our previous earnings call, we expect the exit of Eldridge to reduce our operating footprint dedicated to Subsea operations in Houston by 82%, not only driving significant cost reduction, but more importantly enabling better on-time delivery and responsiveness to our customers' needs. We are extremely pleased with this outcome, which fits our strategy of maintaining a flexible cost structure and a conservative balance sheet to take full advantage of the opportunities created by industry cycles.' Kendal Reed, CFO of Innovex, commented, 'The proceeds from the sale of Eldridge are expected to further strengthen our balance sheet. We have multiple avenues to deploy this capital to drive long-term returns for our shareholders, including our previously announced $100.0 million share buyback authorization as well as a robust M&A pipeline. We will continue evaluating those alternatives against each other in the context of our dynamic market environment.' Additional details on the sale of the Eldridge facility are available in the 8-K and Purchase Agreement filed contemporaneously with this press release. Q1 Business Update and Conference Call / Webcast Details Innovex expects total revenue for the first quarter of 2025 to be approximately $240 million compared to previously announced guidance of $245 - $255 million. As expected, revenue in both Mexico and US Offshore declined in Q1 2025 as compared to Q4 2024, but revenue weakness in Mexico was far greater than projected. Despite lower-than-expected revenue, Innovex anticipates Adjusted EBITDA for the first quarter of 2025 to be between $44 - $46 million 1. Adam Anderson further commented, 'We have intentionally designed the business to be robust to uncertain market conditions and have successfully navigated previous market cycles by gaining market share, maintaining profitability and successfully executing important countercyclical acquisitions.' These results for the first quarter of 2025 are preliminary estimates and are subject to change. The Company is currently finalizing its first quarter 2025 results and, as a result, these preliminary estimates are based solely on information available to management as of the date of this press release. The Company's actual results may differ from these estimates due to the completion of its closing procedures, final adjustments and developments that may arise or information that may become available between now and the time the Company's financial results are finalized. Innovex will provide additional detail with the release of first quarter 2025 earnings results on May 6, 2025, after the close of the U.S. financial markets. Management will host a conference call and a webcast to discuss the financial results on May 7, 2025, at 10:00 a.m. Eastern Daylight Time / 9:00 a.m. Central Daylight Time. The presentation is open to all interested parties and may include forward-looking information. To access the call, please dial in approximately ten minutes before the start of the call. Conference Call and Webcast Details Date / Time: May 7, 2025 - 9:00 AM Central Time Webcast: U.S. Toll-Free Dial-In: (800) 715-9871 International Dial-In: +1 (646) 307-1963 Conference ID: 1774704 For those unable to participate in the live call, an audio replay will be available following the call through midnight Wednesday, May 14, 2025. To access the replay, please call (800) 770-2030 or +1 (609) 800-9909 (International) and enter playback ID 1774704 followed by the # key. A replay of the webcast will also be archived shortly after the call and can be accessed on the Company's website. About Innovex International Innovex International, Inc (NYSE: INVX) is a Houston-based company established in 2024 following the merger of Dril-Quip, Inc and Innovex Downhole Solutions. Our comprehensive portfolio extends throughout the lifecycle of the well; and innovative product integration ensures seamless transitions from one well phase to the next, driving efficiency, lowering cost, and reducing the rig site service footprint for the customer. With locations throughout North America, Latin America, Europe, the Middle East and Asia, no matter where you need us, our team is readily available with technical expertise, conventional and innovative technologies, and ever-present customer service. Non-GAAP Financial Measures Adjusted EBIDTA is a non-GAAP financial measure. The Company defines Adjusted EBITDA as net income before interest expense, income tax expense, depreciation and amortization, (gain)/loss on sale of assets and other expense, net, further adjusted to exclude certain items which the Company believes are not reflective of our ongoing performance or which are non-cash in nature. Management uses Adjusted EBITDA to assess the profitability of the Company's business operations and to compare the Company's operating performance to its competitors without regard to the impact of financing methods and capital structure and excluding costs that management believes do not reflect our ongoing operating performance. Adjusted EBITDA does not represent and should not be considered as an alternative to, or more meaningful than, net income or any other measure of financial performance presented in accordance with GAAP as measures of our financial performance. Our computation of Adjusted EBITDA may differ from computations of similarly titled measures of other companies. A reconciliation to the corresponding GAAP measure is not practicable at this time. Forward-Looking Statements Certain statements contained in this press release and oral statements made regarding the matters addressed in this release constitute 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Innovex's control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology including 'may,' 'believe,' 'expect,' 'intend,' 'anticipate,' 'plan,' 'should,' 'estimate,' 'continue,' 'potential,' 'will,' 'hope' or other similar words and include the Company's expectation of future performance contained herein. These statements discuss future expectations, contain projections of results of operations or of financial condition, or state other 'forward-looking' information, including without limitation statements regarding timing and ability to complete the sale of the Property, the expected benefits of such sale, the Company's ability to return capital to shareholders through share repurchases or otherwise and future M&A activities. You are cautioned not to place undue reliance on any forward-looking statements, which can be affected by assumptions used or by risks or uncertainties. Consequently, no forward- looking statements can be guaranteed. These statements reflect management's expectations based on currently available information and involve significant risks, uncertainties and assumptions that may cause actual results to differ materially, Factors that may cause such differences include, but are not limited to, the finalization of the Company's quarter-end results, economic conditions and other factors noted in the Company's Annual Report on Form 10-K, any Quarterly Reports on Form 10-Q and the other documents that the Company files with the Securities and Exchange Commission. Innovex disclaims any duty to update and does not intend to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release, except as may be required by law.
Yahoo
24-02-2025
- Business
- Yahoo
OneSubsea and Innovex Sign Master Service Agreement for Subsea Wellhead Technology
HOUSTON, February 24, 2025--(BUSINESS WIRE)--Innovex International, Inc. (NYSE: INVX) ("Innovex"), a leading provider of products and technologies to the oil and gas industry, today announced the signing of a strategic Frame Agreement with SLB OneSubsea, for the supply of subsea wellhead systems. This agreement establishes a standard framework for enhanced collaboration, paving the way for faster development of future business opportunities, strengthening the long-standing relationship between OneSubsea and Dril-Quip (now Innovex). "This strategic agreement with OneSubsea underscores our commitment to continuously enhance and optimize our product offerings for our customers," said Adam Anderson, CEO of Innovex. "This collaboration further deepens our relationship with OneSubsea, enabling us to deliver integrated solutions, faster, addressing the evolving needs of the global energy sector. We are excited about the tremendous opportunities this agreement brings and are eager to provide enhanced value across the industry." About Innovex International Innovex International, Inc (NYSE: INVX) is a Houston-based company established in 2024 following the merger of Dril-Quip, Inc and Innovex Downhole Solutions. Our comprehensive portfolio extends throughout the lifecycle of the well; and innovative product integration ensures seamless transitions from one well phase to the next, driving efficiency, lowering cost, and reducing the rig site service footprint for the customer. With locations throughout North America, Latin America, Europe, the Middle East and Asia, no matter where you need us, our team is readily available with technical expertise, conventional and innovative technologies, and ever-present customer service. Cautionary Statement Regarding Forward-Looking Statements This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the performance and benefits of the Company's products. Forward-looking statements are based upon certain assumptions and analyses made by the Company in light of its experience and other factors. These statements are subject to risks beyond the Company's control, including, but not limited to, operating risks and other factors detailed in the Company's public filings with the Securities and Exchange Commission. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and actual outcomes may vary materially from those indicated. View source version on Contacts Investor Relations: Avinash Cuddapah, Senior Director of Investor Media Relations: Nichola Alexander, Senior Director of Sign in to access your portfolio
