Innovex to Acquire TCO Group in $95 Million Deal to Expand Global Well Technology Portfolio
Innovex International, Inc. (NYSE: INVX) has announced a definitive agreement to acquire Norway-based TCO Group AS in a transaction valued at approximately $95 million. The deal, which will be completed through a combination of cash and stock, represents another strategic step in Innovex’s growth strategy and reinforces the company’s commitment to expanding its portfolio of high-value, mission-critical technologies for the global energy industry.
The acquisition is expected to close in the early part of the third quarter of 2026, subject to customary closing conditions and regulatory approvals. Innovex believes the transaction is fully aligned with its disciplined mergers and acquisitions strategy, which focuses on acquiring businesses that offer differentiated technologies, strong profitability, and products that provide substantial operational benefits to customers while representing a relatively small portion of overall project costs.
For the fiscal year ended December 31, 2025, TCO reported net income of approximately $12 million and Adjusted EBITDA of around $18 million. Based on these results, the transaction values TCO at approximately 5.4 times its 2025 Adjusted EBITDA. Innovex expects the acquisition to be accretive to earnings per share, further supporting shareholder value creation while strengthening the company’s competitive position in key international markets.
Founded in 1999 and headquartered in Voss, Norway, TCO Group has established itself as a leading provider of innovative well-completion technologies. The company is widely recognized for pioneering the intervention-free laminated glass plug, a breakthrough technology that transformed well operations by eliminating the need for costly and time-consuming fishing operations. This innovation has helped operators improve efficiency, reduce operational risk, and lower overall well costs, making TCO a respected technology provider across offshore and international energy markets.
Innovex Chief Executive Officer Adam Anderson described the acquisition as a significant milestone for the company and highlighted the strong strategic fit between the two organizations.
According to Anderson, TCO has built an impressive reputation through its differentiated technology portfolio, long-standing customer relationships, and consistent operational execution. He emphasized that the acquisition aligns closely with Innovex’s vision of assembling a collection of market-leading products that deliver measurable value to customers while maintaining capital efficiency.
Anderson noted that TCO’s technologies fit particularly well within Innovex’s “Big Impact, Small Ticket” philosophy. This approach focuses on products that play a critical role in customers’ operations despite representing only a small fraction of overall project expenditures. Such products often provide significant operational benefits, making them highly valuable and resilient across different market cycles.
Beyond the technology fit, Anderson highlighted the geographic advantages associated with the acquisition. TCO has developed a strong presence in Norway and the United Arab Emirates, two strategically important markets for the energy industry. By integrating TCO into its operations, Innovex expects to strengthen its footprint in both regions while creating opportunities to expand the reach of TCO’s technologies through its existing global sales and distribution network.
Innovex believes its established customer relationships and international presence will provide a platform for accelerating TCO’s growth. The company sees substantial opportunities to introduce TCO’s products into new markets and customer segments while continuing to support the business’s existing operations and innovation initiatives.
The acquisition will also bring TCO’s experienced workforce into the Innovex organization. Anderson expressed confidence that combining the expertise of both companies would create significant value for customers, employees, and shareholders alike.
For TCO, the transaction represents an opportunity to accelerate growth while maintaining its commitment to innovation and operational excellence. TCO Chief Executive Officer Robert Abercrombie expressed enthusiasm about joining forces with Innovex and emphasized the complementary strengths of the two companies.
Abercrombie noted that TCO has spent more than two decades building deep technical expertise and developing technologies that address critical challenges in well construction and completion operations. He credited the company’s success to its talented workforce, engineering capabilities, and strong foundation in Norway’s highly advanced energy sector.
He explained that Innovex brings a broad portfolio of complementary technologies, global scale, and extensive market reach. By combining these strengths with TCO’s technical capabilities and product innovation, the merged organization will be better positioned to serve customers around the world and continue advancing well technology solutions.
According to Abercrombie, the combination creates a stronger platform capable of driving innovation, improving operational efficiency, and helping customers achieve more productive and cost-effective wells. He added that both organizations share a commitment to delivering practical solutions that address real-world operational challenges, making the partnership a natural fit.
From a financial perspective, Innovex views the acquisition as a highly attractive investment opportunity. Chief Financial Officer Kendal Reed stated that TCO’s business characteristics align closely with the company’s established acquisition criteria.
Reed highlighted TCO’s portfolio of differentiated products, which have enabled the company to secure a strong market position across offshore and international energy markets. These products have not only supported revenue growth but have also contributed to strong margins and healthy cash flow generation.
He explained that Innovex’s acquisition framework prioritizes businesses capable of generating sustainable returns while enhancing long-term shareholder value. TCO’s financial performance, combined with its growth potential, makes it an attractive addition to Innovex’s portfolio.
Reed also emphasized that the acquisition is expected to generate returns on capital employed that significantly exceed the returns currently generated by idle cash on the company’s balance sheet. As a result, Innovex believes the transaction will improve capital efficiency and contribute to stronger long-term financial performance.
The acquisition comes at a time when energy companies worldwide continue to prioritize technologies that improve efficiency, reduce operational risk, and optimize well performance. As operators seek solutions that deliver measurable results while controlling costs, technologies such as those developed by TCO are expected to remain in strong demand.
By combining Innovex’s global reach with TCO’s specialized technology portfolio, the company aims to strengthen its position as a leading provider of mission-critical solutions for the energy sector. The transaction expands Innovex’s technology offerings, enhances its international presence, and supports its strategy of building a diversified portfolio of high-margin, capital-efficient businesses.
With a strong strategic rationale, attractive financial profile, and significant growth opportunities, the acquisition of TCO marks another important step in Innovex’s evolution. As the companies prepare to integrate their operations following the expected closing in 2026, both organizations remain focused on delivering innovation, operational excellence, and long-term value to customers and shareholders around the world.
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