- Innovex International Inc. (INVX, Financial) acquires Citadel Casing Solutions to enhance its platform.
- The acquisition is expected to be 8% accretive to Innovex's EPS and includes $2 million anticipated cost synergies.
- This strategic move aims to strengthen Innovex's leadership in the cementing tool market both onshore and offshore.
Innovex International Inc. (INVX) has successfully completed the acquisition of Citadel Casing Solutions, LLC, in a strategic move to expand its energy industrial platform with highly engineered, single-use products. The investment adheres to Innovex's disciplined M&A framework and stands to be financially attractive even before projected synergies.
Citadel, founded in 2016, is recognized as a leader in downhole technologies, which are vital for reducing cycle times and enhancing operational efficiencies, ultimately improving customer economics. The transaction values Citadel at approximately 3.8x LTM Adjusted EBITDA, translating to an 8% increase in Innovex's earnings per share (EPS).
Innovex anticipates realizing $2 million in cost synergies within three months post-acquisition and expects additional synergies as Citadel is integrated. CEO Adam Anderson emphasizes that this acquisition strengthens Innovex's market position, particularly benefiting from Citadel's proprietary TrenchFoot™ Wet Shoe technology that enhances reservoir access.
Commenting on the acquisition, Innovex CFO Kendal Reed stated that Citadel's "Big Impact, Small Ticket" product philosophy aligns well with Innovex's growth strategy, allowing for rapid and profitable expansion while maintaining solid returns on capital. The acquisition, executed as an all-cash transaction, supports Innovex's ongoing corporate buyback program without increasing its leverage.
The acquisition positions Innovex to further its market share in both the US Land cementing tool market and the broader offshore and international segments, continuing its mission to enhance well efficiency and support the delivery of reliable, affordable energy globally.
