Drilling player H&P to acquire KCA Deutag for $2 billion

Multinational

TULSA, July 25, 2024 – US drilling contractor Helmerich & Payne (H&P) will acquire UK rival KCA Deutag for USD 1.97 billion, the companies announced on Thursday.

The combined company will have a leading position in onshore drilling globally, particularly in the USA and Middle East, benefiting from increased scale and diversification.

KCA Deutag’s land operations in key markets in the Middle East were a particular selling point for H&P. The UK player generated around 70% of its 2023 EBITDA from these operations.

“Acquiring KCA Deutag gives H&P immediate scale in core Middle East markets in a way that would be challenging to replicate organically,” president and CEO of H&P John Lindsay said.

“Furthermore, as there is very little geographic overlap, we view this transaction more than just acquiring assets, but rather acquiring operations with quality people.”

The transaction is expected to close prior to the end of this year.

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