Newpark Resources has agreed to sell its environmental services business to ECOSERV, LLC, a portfolio company of Lariat Partners. According to terms of the deal, Newpark will receive $100 million in cash. Simmons & Company International is advising Newpark on the transaction, which is expected to close in the first quarter of 2014.
THE WOODLANDS, Texas, Feb. 11, 2014 /PRNewswire/ — Newpark Resources, Inc. (NYSE: NR) today announced that it has entered into a definitive agreement to sell its Environmental Services business to ECOSERV, LLC, a portfolio company of Denver-based private equity group Lariat Partners, LP. Under the terms of the agreement, Newpark will receive $100 million in cash, subject to adjustment based on actual working capital conveyed at closing. While containing representations, warranties and indemnities which are customary for transactions of this nature, this agreement significantly limits Newpark’s post-closing environmental obligations, including those related to the waste transfer and disposal facilities.
Paul Howes, Newpark’s President and Chief Executive Officer, stated, “I am very pleased with the signing of this agreement, which is consistent with our stated strategy of focusing our energy on expanding our markets and developing leading technologies within our core drilling fluids and mats segments. We appreciate our dedicated employees in the Environmental Services division and their many years of valuable service.”
The sale is expected to close in the first quarter of 2014, subject to customary conditions, including regulatory approval. Proceeds from the sale will be used for general corporate purposes, potential acquisitions and/or share repurchases under the company’s current repurchase program.
Simmons & Company International is serving as financial advisor to Newpark in this transaction.
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. For more information, visit our website at www.newpark.com.