Leading mining engineer and manufacturer ESCO will acquire Ulterra Drilling Technologies for US$325 million. A definitive purchase agreement has been signed by ESCO to acquire all of the company’s outstanding equity interests.
Ulterra designs and manufactures polycrystalline diamond compact drill bits which are used in the construction of oil and gas wells. The company employs 400 people and has manufacturing bases in Canada. ESCO says Ulterra will continue to operate as a separate division, focused on oil and gas consumables.
“This acquisition allows ESCO to leverage Ulterra’s deep expertise in the drilling industry and to capitalize on the growing oil and gas sector in North America. Ulterra is a natural fit for ESCO given its culture of designing highly engineered wear products and delivering world-class service,” says ESCO’s chief executive officer Cal Collins.
The acquisition will complement ESCO’s strategy to add innovative highly engineered consumable products with strong growth potential to its existing portfolio of wear solutions. Another benefit will be the ability to leverage ESCO’s global sales network to penetrate new markets with Ulterra products.
Ulterra’s chief executive officer Johnny Everett says, “It has always been important to us that Ulterra become part of an organization that understands our business model and robust service culture. At the same time we were looking for a partner that would provide the resources and infrastructure to support further expansion. Joining ESCO means we will achieve both goals.”
ESCO is based in Oregon and operates across 21 countries as a leading independent designer, manufacturer and provider of highly engineered wear parts and products used in mining, infrastructure development, power generation, aerospace and industrial applications.