My use case was I wanted to replace
foo:/Drive_Letter
with foo:/bar/baz/xyz
In my case I was able to do it with the following code.
I was in the same directory location where there were bulk of files.
find . -name "*.library" -print0 | xargs -0 sed -i '' -e 's/foo:\/Drive_Letter:/foo:\/bar\/baz\/xyz/g'
hope that helped.