HOUSTON, July 27, 2016 /PRNewswire/ -- Flotek Industries,
Inc. (NYSE:FTK - News) ("Flotek" or the "Company") announced today
its intent to acquire International Polymerics, Inc. ("IPI"), and
affiliates, for consideration consisting of cash and Flotek common
stock. The acquisition will be treated as an asset purchase for
income taxation purposes. Included in the assets will be
approximately $1.2 million in working
capital.
Flotek will pay approximately $7.9
million in cash and issue approximately 248,000 shares of
common stock as consideration for the acquisition.
Founded in 2004, IPI is based in Dalton, Georgia with a distribution center in
Monahans, Texas and is one of the
largest domestic suppliers of natural polymers, including guar, to
the oil and gas industry. IPI was founded by Donald Bramblett, a leading expert of natural
polymers and the development of guar applications in the energy and
textile trades. IPI's proprietary guar processing systems have
provided high-quality guar powder and slurry to oil and gas clients
for nearly a decade in nearly every producing basin in the United States.
"We are pleased that Donald, Mark and their team have agreed in
principal to become part of Flotek," said John Chisholm, Flotek President Chairman and
Chief Executive Officer. "The IPI team has worked hard over the
past twelve years to build a resilient business focused on
providing best-in-class polymers to the energy and textile
industries. Donald Bramblett is
widely regarded as one of the world's top experts on natural
polymers and guar, adding more firepower to Flotek's leading
oilfield chemistry research team. And, the addition of polymer
chemistry and delivery systems to Flotek's stable of oilfield
chemistry allows us to further accelerate our Prescriptive
Chemistry Management™ efforts, focused on providing total chemistry
solutions for our clients' wells. We look forward to integrating
IPI into the Flotek family."
Chisholm added, "IPI has high strategic value for Flotek in both
the application of polymer chemistry to new, value-added oilfield
chemistries as well for its core guar powder and slurries which
serve as key delivery media for Flotek's proprietary chemistries
such as PrF™ and CnF® completion chemistries. This acquisition
should allow us to accelerate our fluid systems development while
adding-value and increasing margins in IPI's core guar business
using our direct distribution network."
"Finally, we believe that the IPI acquisition opens the door to
natural polymer applications in other industrial segments,"
concluded Chisholm. "Moreover, the Monahans, Texas facility is advantageously
located in the heart of the Permian Basin which provides a
strategic base from which to operate Flotek's regional chemistry
operations, creating efficiencies not presently available."
"In 12 years of operations, IPI has a solid profitability record
and we believe will continue to focus on improving business
operations and efficiencies as well as creating exceptional
products that Flotek can market to its existing client base," said
Chisholm. "We also believe we have opportunities through innovation
and our distribution network to meaningfully improve margins of the
base business as well as create innovative, value-added products
based on IPI's polymer chemistry."
Donald Bramblett will remain the
President of IPI and will report to Josh
Snively, Executive Vice President of Flotek who oversees the
Company's chemistry manufacturing efforts.
The transaction is scheduled to close coincident with the
execution of the Stock Purchase Agreement and will become a part of
Flotek's Energy Chemistry reporting segment.
About Flotek Industries, Inc.
Flotek is a global developer and distributor of a portfolio of
innovative oilfield technologies, including specialty chemicals and
down-hole drilling and production equipment. It serves major and
independent companies in the domestic and international oilfield
service industry. The Company also serves commercial and industrial
markets with a portfolio of diverse chemistry technologies.
Flotek Industries, Inc. is a publicly traded company headquartered
in Houston, Texas, and its common
shares are traded on the New York Stock Exchange under the ticker
symbol "FTK."
For additional information, please visit Flotek's web site at
www.flotekind.com.
Forward-Looking Statements
Certain statements set forth in this Press Release constitute
forward-looking statements (within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934) regarding Flotek Industries, Inc.'s business,
financial condition, results of operations and prospects. Words
such as expects, anticipates, intends, plans, believes, seeks,
estimates and similar expressions or variations of such words are
intended to identify forward-looking statements, but are not the
exclusive means of identifying forward-looking statements in this
Press Release.
Although forward-looking statements in this Press Release
reflect the good faith judgment of management, such statements can
only be based on facts and factors currently known to management.
Consequently, forward-looking statements are inherently subject to
risks and uncertainties, and actual results and outcomes may differ
materially from the results and outcomes discussed in the
forward-looking statements. Factors that could cause or contribute
to such differences in results and outcomes include, but are not
limited to, demand for oil and natural gas drilling services in the
areas and markets in which the Company operates, competition,
obsolescence of products and services, the Company's ability to
obtain financing to support its operations, environmental and other
casualty risks, and the impact of government regulation.
Further information about the risks and uncertainties that may
impact the Company are set forth in the Company's most recent
filings on Form 10-K (including without limitation in the "Risk
Factors" Section), and in the Company's other SEC filings and
publicly available documents. Readers are urged not to place undue
reliance on these forward-looking statements, which speak only as
of the date of this Press Release. The Company undertakes no
obligation to revise or update any forward-looking statements in
order to reflect any event or circumstance that may arise after the
date of this Press Release.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/flotek-announces-acquisition-of-international-polymerics-inc-adding-to-speciality-chemistry-business-and-enabling-further-prescriptive-chemistry-management-opportunities-300304644.html
SOURCE Flotek Industries, Inc.