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Slide #97. Newpark Resources, Inc. — Alliance Drilling Fluids, LLC
Newpark Resources, Inc. (NYSE:NR)
Alliance Drilling Fluids, LLC
Newpark Resources, Inc. (NYSE: NR) today announced that it has completed the previously announced acquisition of substantially all assets and operations of Alliance Drilling Fluids, LLC ("Alliance"), 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. Alliance recorded revenues of $89 million and operating income of $14 million for the year ended December 31, 2011, of which approximately 50% of revenue and 40% of operating income was attributable to the proppant business.
Newpark Resources is supplier providing products, rentals, and services. Co. operates its business through two reportable segments: Fluids Systems and Mats and Industrial Solutions. Co.'s Fluids Systems segment provides customized solutions for technical oil, natural gas, and geothermal projects involving subsurface conditions such as horizontal, directional, geologically deep, or drilling in deep water. Co.'s Industrial Solutions segment provides composite matting system rentals utilized for temporary worksite access, along with related site construction and services to customers in various markets.
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Hold (2.00 out of 4)
(ranked lower than approx. 100% of all stocks covered)
Based on Zacks ABR data;
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