DNOW Announces Acquisition of Trojan Rentals, LLC

Rhea-AI Summary

DNOW Inc. (NYSE: DNOW) has completed an all-cash acquisition of Trojan Rentals, a provider of pump rentals, automation technology, and layflat hose equipment for water management solutions. This marks DNOW's third acquisition in the water management sector, following Flex Flow and Performance Multi-Flow Solutions. The acquisition expands DNOW's product portfolio and enhances its earnings profile, particularly complementing its U.S. Process Solutions business and Flex Flow pump rental operations. The strategic move aims to strengthen DNOW's position in providing comprehensive water management solutions to meet industry demands.

Positive

• All-cash acquisition indicates strong financial position
• Strategic expansion of water management solutions portfolio
• Enhancement of company's earnings profile
• Complementary integration with existing U.S. Process Solutions business
• Expansion of product offering and service capabilities

Negative

• None.

Insights

Financial Analyst

The acquisition of Trojan Rentals marks a strategic expansion in DNOW's water management portfolio, representing the company's third acquisition in this sector. The all-cash transaction strengthens DNOW's market position in critical water infrastructure services, particularly in pump rentals and automation technology. This vertical integration enhances DNOW's service capabilities and revenue streams through three key areas:

• Water management solutions expansion
• Automation services integration with U.S. Process Solutions
• Enhanced pump rental capabilities through Flex Flow synergies

The deal aligns with industry trends toward comprehensive water management solutions and should positively impact DNOW's earnings profile. While specific financial terms weren't disclosed, the acquisition's focus on recurring rental revenue and automation services suggests potential margin improvements and stable cash flow generation.

Industrial Technology Expert

Trojan's automation technology and water management solutions represent significant technological value-add to DNOW's portfolio. The integration of layflat hose technology and water treatment capabilities addresses critical infrastructure needs in water sourcing, transfer and recycling. This acquisition particularly strengthens DNOW's competitive position in the growing water management automation sector, where demand for sophisticated control systems and monitoring solutions continues to rise. The combination of Trojan's automation expertise with DNOW's existing Process Solutions business creates a more comprehensive technological offering that can better serve complex industrial water management challenges.

HOUSTON--(BUSINESS WIRE)-- DNOW Inc. (NYSE: DNOW) announced it has completed its all-cash acquisition of Trojan Rentals, LLC (“Trojan”), a leading provider of pump rentals, automation technology and sales of layflat hose and other associated equipment to support customers’ water sourcing, transfer, recycling and treatment requirements.

David Cherechinsky, President and CEO of DNOW noted, “Trojan’s reputation for a customer-first mindset, coupled with its highly sought after products and solutions, enables water management customers to deliver critical water infrastructure services to the industry. Trojan expands DNOW’s product offering and enhances our earnings profile as this deployment of capital strategically aligns with and reinforces our commitment to increasing long-term value for our shareholders and stakeholders.

Along with Flex Flow and Performance Multi-Flow Solutions, this marks the third acquisition as part of our strategy to provide a more holistic water management solution to the market. Trojan’s automation services are highly complementary to DNOW’s growing U.S. Process Solutions business, and its addition to DNOW’s Flex Flow pump rental business presents an opportunity to meet a growing demand to solve the industries’ complex water management challenges.”

About Trojan Rentals

Founded in 2016, Trojan provides energy products and solutions across the water management life cycle to a variety of end-markets including upstream and midstream oil and gas, municipal and industrial. Headquartered in Odessa, Texas, Trojan has approximately 90 employees across three locations in the United States.

About DNOW

DNOW is a worldwide supplier of energy and industrial products and packaged, engineered process and production equipment with a legacy of over 160 years. Headquartered in Houston, Texas, with approximately 2,550 employees and a network of locations worldwide, we offer a broad set of supply chain solutions combined with a suite of digital offerings branded as DigitalNOW® that provide customers world-class technology for digital commerce, data and information management. Our locations provide products and solutions to exploration and production, midstream transmission and storage companies, refineries, chemical companies, utilities, mining, municipal water, manufacturers, engineering and construction as well as companies operating in the decarbonization, energy evolution and renewables end markets.

Statements made in this press release that are forward-looking in nature are intended to be "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 and may involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to documents filed by DNOW Inc. with the U.S. Securities and Exchange Commission, which identify significant risk factors which could cause actual results to differ from those contained in the forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241126013771/en/

Brad Wise

Vice President Digital Strategy and Investor Relations

(281) 823-4006

Source: DNOW Inc.

FAQ

What company did DNOW acquire in its latest acquisition?

DNOW acquired Trojan Rentals, , a provider of pump rentals, automation technology, and layflat hose equipment for water management solutions.

How many water management acquisitions has DNOW completed?

This is DNOW's third acquisition in the water management sector, following Flex Flow and Performance Multi-Flow Solutions.

What type of payment structure did DNOW use for the Trojan acquisition?

DNOW completed an all-cash acquisition of Trojan Rentals.

How will the Trojan acquisition benefit DNOW's existing operations?

The acquisition will expand DNOW's product offering, enhance its earnings profile, and complement its U.S. Process Solutions business and Flex Flow pump rental operations.