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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 engaged in providing products, rentals, and services primarily to the oil and natural gas exploration and production (E&P) industry. Co. has two reportable segments: Fluids Systems, which provides customized fluids solutions to E&P customers globally; and Mats and Integrated Services, which provides composite mat rentals utilized for temporary worksite access, along with site construction and related site services to customers in various markets including E&P, electrical transmission and distribution, pipeline, solar, petrochemical, and construction industries. Co. also sells composite mats to customers around the world.
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