Helmerich & Payne to acquire KCA Deutag for $1.97B in cash

Helmerich & Payne and KCA Deutag International announced a definitive agreement under which H&P will acquire KCA Deutag for $1.97B in cash. KCA Deutag has a significant land drilling presence in the Middle East, which represents approximately two-thirds of the company’s calendar year 2023 operating EBITDA, with additional operations in South America, Europe and Africa. Under the terms of the agreement, which has been unanimously approved by the H&P board of directors, H&P will acquire KCA Deutag International for $1.97B in cash. The transaction is expected to close prior to calendar 2024 year end, subject to customary closing conditions and regulatory approvals. The transaction will be funded with cash on hand and new borrowings. H&P expects to refinance KCA Deutag’s existing debt at a lower cost of capital. Following the completion of the transaction, H&P will remain headquartered in Tulsa, Oklahoma, and John Lindsay will continue to serve as president and CEO and as a member of the H&P board of directors. There will be no changes to the existing H&P board of directors. Upon closing the transaction, H&P expects to have three primary operating segments: North America Solutions, International Solutions, and Offshore Solutions. H&P’s North America Solutions segment will remain unchanged.