Houlihan Lokey Advises KCA Deutag

Houlihan Lokey is pleased to announce that KCA Deutag (KCAD or the Group) has agreed to acquire the Onshore Drilling Division of Saipem S.p.A. (BIT:SPM). The acquisition will create a leading global onshore drilling business with pro-forma 2021 revenue of approximately $1.8 billion across core geographies in the Middle East and key markets in Europe and Latin America. Houlihan Lokey served as the exclusive financing advisor to KCAD on this transaction. The transaction is expected to close in Q4 2022.

Upon completion of the acquisition, the combined entity will generate over 50% of its pro-forma 2021 EBITDA of approximately $443 million from the Middle East, employ more than 11,000 employees globally, and have a total backlog of $7.2 billion. The acquisition is expected to generate about $24 million in cost synergies per annum from overhead and operational efficiencies.

Houlihan Lokey acted as the exclusive financing advisor to KCAD and arranged, structured, and negotiated the financing for the acquisition.