Reuters is reporting Blackstone Group has agreed to buy Ulterra Drilling Technologies of Fort Worth in a $700 million acquisition.
Ulterra, manufacturer of drill bits and downhole tools is said to be one of several oilfield service firms shopped around in recent weeks. The company is not commenting about the sale. But sources indicate Blackstone is buying the firm from fellow private equity house American Securities which bought it in 2016.
The acquisition of Ulterra is being supported by a debt package which is currently being pre-marketed ahead of a formal launch, one of the sources said this week, according to Reuters.
Other deals in the oilfield services space announced in recent days include the sale of downhole technology firm Magnum Oil Tools to Nine Energy Services for $493 million, and the purchase by Carlyle Group of EnerMech – an equipment provider to offshore oil and gas platforms – from Lime Rock Partners for an undisclosed price.
Schlumberger has the largest share of the global drill bit market, with an estimated $787 million in revenue last year, followed by General Electric’s Baker Hughes, Halliburton and National Oilwell Varco, according to Spears & Associates.