HOUSTON, Jan. 28, 2015 /PRNewswire/ -- Flotek
Industries, Inc. ("Flotek" or the "Company") (FTK) today
announced it has entered into a Definitive Agreement to purchase
substantially all of the assets of International Artificial Lift,
LLC ("IAL").
IAL is a developmental-stage company that specializes in the
design, manufacturing and service of next-generation Hydraulic
Pumping Units ("HPU") that serve to increase and maximize
production for oil and natural gas wells. Founded and led by
Larry Best, a 40-plus year veteran
of hydraulic and electrical computerized controls and lift systems,
IAL has developed patented and patent-pending designs and
technology that provide Flotek with proprietary advances in
hydraulic lift and control systems.
"We are delighted to welcome Larry and his team to the Flotek
family and look forward to adding IAL's advanced hydraulic
technology to our growing array of production technologies," said
John Chisholm, Flotek's Chairman,
President and Chief Executive Officer. "Larry's experience and
expertise as an innovator in hydraulic pumping and lift technology
not only creates a technology advantage for Flotek but it also
instantly expands Flotek's market through Larry's contacts and
reputation as a best-in-class hydraulic lift developer. This
strategic acquisition also stands in support of our strategy to
find leading niche technologies that will expand our market
opportunities and that provide solid value for our
shareholders."
The acquisition of IAL provides Flotek with complete control
over the manufacturing and service quality of a next-generation,
proprietary design in the rapidly expanding Hydraulic Pumping Units
market. The IAL/Flotek HPU design features continuous horsepower
with a patent-pending synchronized lifting system that allows
operators to produce more efficiently and at a significantly
reduced cost compared to other hydraulic lift designs.
"The IAL team is delighted to join the Flotek family which will
allow us to accelerate the commercialization of the next-generation
of Hydra-Lift pumping systems and assist John Chisholm, David
McMahon and the team in their expansion of the
production technologies business," said Larry Best, President of International
Artificial Lift, LLC. "We believe, regardless of the current market
environment, that demand for efficient HPU systems will continue to
grow meaningfully over the next several years, and the combination
of IAL's advanced hydraulic technologies and expertise with
Flotek's distribution network and reputation for providing superior
service will prove to be very successful as this business further
develops."
Larry Best brings over 40 years
of experience in the development, distribution and service of
hydraulic and electrical systems to Flotek in both the energy and
aerospace industries. Beginning in the early 1980s, Mr. Best
developed advanced variable speed control and drive systems for
controlling pump jacks and hydraulic systems to enhance production
of maturing oil and gas wells. In 1996, Mr. Best became the general
manager of Hydradine Hydraulics where he designed and developed
hydraulic regen systems for testing helicopter transmissions,
providing technology for companies such as Boeing, Sikorsky and
Bell Helicopter.
Longing to return to the oilfield, Mr. Best founded Chaparral
Automation, LLC in 2006 where he and his team developed the
Dura-Lift long stroke, heavy lift HPU with a patented
hydraulic-electrical regen system with a variable speed pump
control system. Chaparral was purchased by privately-held Global
Oilfield Services, Inc. in 2009 which in turn was purchased by an
international, integrated oilfield services company in 2011.
In 2012, Mr. Best formed International Artificial Lift, LLC,
again looking for ways to improve on precision pumping and control
equipment used in oil and gas production. The result was the
Hydra-Lift product line which features IAL's patented new hydraulic
accumulator and other proprietary components.
"The products offered by IAL give Flotek a tangible competitive
advantage, especially as the market for HPUs continues to grow,"
said David McMahon, Flotek's Vice
President of Production Technologies. "The advances in hydraulic
pumping technology – since the original units were introduced in
the 1980s – have been driven by entrepreneurs of which Larry is
among the best in the business. The IAL design focuses on providing
precision pumping functions with the fewest components, creating a
more reliable system with significantly less maintenance downtime
at a very competitive price. It also creates a significantly
smaller environmental footprint versus traditional pumping units.
We look forward to combining Larry's expertise and superior
technology with our distribution and service acumen to quickly
become a meaningful player in the hydraulic lift business."
Flotek provided total consideration of $2.25 million for the purchase of substantially
all of the assets of IAL including all intellectual property,
finished goods and inventory. Flotek also assumed the lease on
IAL's corporate headquarters in Boyd,
Texas in the Dallas-Ft.
Worth metroplex. Mr. Best has agreed to remain with the
Company for a minimum of two years from the effective date of the
transaction.
"We look forward to introducing Larry and his team to our
clients and stakeholders in the coming weeks and a successful
commercial launch of the Hydra-Lift product lines," concluded
Chisholm. "While a small operation today, the technological
advances seen in IAL's hydraulics provide Flotek with an
opportunity to become a difference maker in hydraulic lift in short
order."
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. 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.
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SOURCE Flotek Industries, Inc.