Core Viewpoint - Star Equity Holdings, Inc. has acquired Alliance Drilling Tools, LLC, marking a significant milestone in its growth strategy by establishing a new "Energy Services" operating division [1][4][9]. Transaction Highlights - The acquisition closed on March 3, 2025, with an enterprise value of 3.0 million [6][7]. - Star Equity paid 2.5 million in debt financing, and issued 775,000 shares of Series A Preferred Stock valued at 10.5 million in revenue for the full year 2024, with a gross margin of 48% and Adjusted EBITDA of $2.4 million [4]. Strategic Fit - The acquisition allows Star to diversify its operating portfolio and leverage ADT's specialized industry knowledge to capitalize on growth opportunities in the energy sector [4][9]. - ADT will retain its brand and continue operations as a division of Star, which now comprises three divisions: Building Solutions, Energy Services, and Investments [4][9]. Future Growth Potential - Star plans to enhance ADT's growth through strategic investments aimed at expanding operational capacity and meeting rising demand for its services [4][6].
Star Equity Holdings Acquires Alliance Drilling Tools