Innovex International (INVX) Acquisition presentation summary

Strategic rationale and transaction overview

• Acquisition of TCO Group AS aligns with a strategy of adding high-impact, small-ticket, mission-critical products.

• TCO brings strong margins, free cash flow, and high returns on capital, enhancing market position in Norway and UAE.

• Transaction is expected to close in early Q3, with a purchase price of $95 million, split between $65 million cash and $30 million stock.

• TCO’s differentiated technology portfolio complements existing offerings and targets key international and offshore markets.

• Transaction is accretive to EPS and maintains a strong liquidity position post-closing, with a $111 million adjusted net cash position.

Financial highlights and metrics

• TCO 2025 revenue projected at $70 million, with $17.6 million Adjusted EBITDA and a 25% Adjusted EBITDA margin.

• TCO’s 2025 free cash flow estimated at $11.5 million, representing 16% of revenue and less than 1% capex as a percentage of revenue.

• Transaction multiple is 5.4x TCO’s 2025 Adjusted EBITDA, with a 14% transaction ROCE.

• Combined entity maintains a capital-light model, reinvesting only 2-3% of revenue into capex.

• Innovex’s Q1 2026 cash position is $201 million, with a strong balance sheet and high free cash flow conversion (50-60% of Adjusted EBITDA).

Product and market positioning

• TCO’s core products include completion barrier plugs, annulus pressure relief systems, chemical injection systems, and tubing-conveyed perforating services.

• These offerings reduce operational risk, improve well integrity, and lower intervention costs for customers.

• TCO’s technology is recognized for reliability and efficiency in demanding offshore and international markets.

• Acquisition enhances the curated product portfolio and supports customer-linked innovation.

• Margin improvement potential exists through supply chain enhancements.