Nabors Industries sells Quail Tools to Superior Energy Services for $600m, including $375m in cash and a $250m seller note. The deal broadens Superior’s US market presence, making it the preferred supplier for Nabors. Quail Tools is expected to generate $150m in EBITDA this year.

Quail Tools offers drill pipe and related equipment. The acquisition merges Quail into Superior’s rental operations, enhancing its services globally. The sale is projected to reduce net debt by over 25% and yield annual interest savings of $50m for Nabors, improving financial flexibility.

After selling Quail Tools, Nabors retains ownership of drilling rigs and management contracts obtained from the Parker acquisition. Nabors expects post-closing synergies to generate at least $55m in adjusted EBITDA in 2025. The sale is anticipated to accelerate over five years of free cash flow from combined businesses.

Read more at Yahoo Finance: Nabors to sell drill pipe rental unit for $600m