Star Equity Holdings, Inc. (Nasdaq: STRR) entered into a definitive Stock Purchase Agreement on October 23, 2026, to acquire a metal fabrication company. The transaction involves the Target Company, PD Machine, LLC, which operates a machine shop in Vernal, Utah, providing specialized welding, repair, rebuilding, and machining services for drilling equipment.
The Target Company merged into Star Equity’s wholly owned subsidiary, Alliance Machine Solutions, Inc., which survived the merger. In connection with the closing of the transaction, Star Equity paid the Sellers aggregate consideration of $350,000 in cash and issued 75,000 shares of its 10% Series A Cumulative Perpetual Preferred Stock. The consideration is subject to customary adjustments for debt, cash on hand, transaction expenses, and net working capital.
At closing, $50,000 of the cash consideration and 5,000 shares of the Series A Preferred Stock were held in escrow to satisfy indemnification and purchase-price adjustment obligations. Additionally, the Company agreed to acquire the Owned Real Property for $150,000 in cash and 35,000 shares of Series A Preferred Stock in a separate closing, subject to conditions being satisfied or waived by February 28, 2027.
The acquisition is part of Star Equity’s Energy Services division, specifically its wholly owned Alliance Drilling Tools (ADT) business. The company stated that the shop will work alongside ADT’s existing Vernal operation to support customers in the Rocky Mountain region, including the Uinta Basin, mining, and geothermal opportunities.
