Newpark Resources Closes Acquisition Of Drilling Fluids Business
- Category: Drilling
- Published: 2013-Jan-03
THE WOODLANDS, Tex -- Newpark Resources, Inc. has announced it has completed the acquisition of substantially all assets and operations of Alliance Drilling Fluids, LLC, a provider of drilling fluids, proppants and related services headquartered in Midland, Texas.
Total cash consideration at closing was approximately $53 million, which was funded through borrowings on Newpark’s revolving credit facility. The purchase price is subject to further adjustments, based upon actual working capital conveyed. Additional consideration up to $4.3 million may be payable based on the profitability of the proppant distribution business over the two year period following the acquisition.
Paul Howes, president and chief executive officer of Newpark, stated, “We are pleased to announce this acquisition, which is consistent with our strategy to grow our Drilling Fluids business. With their core business in the
“We expect the
Newpark Resources, Inc. is a worldwide provider of drilling fluids, temporary worksites and access roads for oilfield and other commercial markets, and environmental waste treatment solutions.