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8-K - FORM 8-K - NEWPARK RESOURCES INC | c15973e8vk.htm |
Exhibit 99.1
NEWS RELEASE | ||||
Contacts: | James E. Braun, CFO Newpark Resources, Inc. 281-362-6800 |
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FOR IMMEDIATE RELEASE | Ken Dennard, Managing Partner Dennard Rupp Gray & Lascar, LLC ksdennard@drg-l.com 713-529-6600 |
NEWPARK RESOURCES CLOSES ACQUISITION
OF RHEOCHEM PLCS DRILLING FLUIDS BUSINESS
OF RHEOCHEM PLCS DRILLING FLUIDS BUSINESS
THE WOODLANDS, TX April 21, 2011 Newpark Resources, Inc. (NYSE: NR) today announced the
closing of the acquisition of Australian-based Rheochem PLCs drilling fluids and engineering
services business, effective April 21, 2011. The acquired business provides drilling fluids and
engineering services to the oil and gas exploration and geothermal industries with operations in
Australia, New Zealand and India. Newpark paid AUD $23.8 million in cash at closing, subject to
typical future adjustments for working capital. Additional consideration may be payable based on
financial results of the acquired business over a one-year earn-out period, up to a maximum total
consideration of AUD $45 million.
Paul Howes, Newparks President and Chief Executive Officer, stated, We are extremely pleased
to complete this acquisition, which gives us an important footprint in the growing Asia Pacific
region and supports the continued global expansion of our drilling fluids operations. As stated
previously, we are also acquiring the Rheochem brand name, which is well recognized in the Far
East, and will continue to operate under that name. We see the potential to introduce our
technology to new customers and gain exposure to growing LNG activity in Australia, while also
gaining knowledge from Rheochems expertise in geothermal fluids. Rheochem is a natural fit with
Newpark as both companies share the commitment to provide operators with best-in-class drilling
fluids and engineering services.
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.
This news release contains forward-looking statements within the meaning of the Private Securities
Litigation Reform Act that are based on managements current expectations, estimates and
projections. All statements that address expectations or projections about the future, including
the statements regarding the business and financial outlook of Rheochems drilling fluids segment
and the anticipated benefits of the acquisition to Newpark, Newparks strategy for growth, product
development, market position, expected expenditures and financial results are forward-looking
statements. Some of the forward-looking statements may be identified by words like expects,
anticipates, plans, intends, projects, indicates, and similar expressions. These
statements are not guarantees of future performance and involve a number of risks, uncertainties
and assumptions. Many factors, including those discussed more fully elsewhere in this release and
in documents filed with the Securities and Exchange Commission by Newpark, particularly its Annual
Report on Form 10-K for the year ended December 31, 2010, as well as others, could cause results to
differ materially from those stated. These risk factors include, but are not limited to, potential
disruption of Newparks business and operations as it integrates the acquired Rheochem segment into
its business, political and economic conditions in the markets in which the acquired business
operates, the ability to realize the anticipated benefits from the acquisition, our customer
concentration and cyclical nature of our industry, the availability of raw materials and skilled
personnel, our market competition, the cost and continued availability of borrowed funds, our
international operations, legal and regulatory matters, including environmental regulations,
inherent limitations in insurance coverage, potential impairments of long-lived intangible assets,
technological developments in our industry, the impact of severe weather, particularly in the U.S.
Gulf Coast, and restrictions on offshore drilling activity in the Gulf of Mexico. Newparks
filings with the Securities and Exchange Commission can be obtained at no charge at www.sec.gov, as
well as through our website at www.newpark.com.
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