Dril-Quip Inc., an offshore drilling equipment manufacturer, has agreed to buy fellow Houston-based manufacturer TIW Corp. for $143 million.
TIW Corp. has been in business for 100 years and builds liner hanger systems, or equipment used to help shore up well bore holes, and other products such as valves. TIW posted a peak revenue of $140 million in 2014, with revenue expected to bottom out between $60 million and $70 million in 2016, according to a company statement.
Dril-Quip president and CEO Blake DeBerry said in a statement that TIW’s long, family-owned history of success and its onshore presence in the Middle East and South America will boost Dril-Quip’s business opportunities.
“TIW is a market leader in the liner hanger business and we are particularly excited about its expandable liner hanger technology that is frequently utilized in deepwater or high pressure/high temperature environments,” DeBerry said.
The purchase is subject to regulatory approval.