Featured Company News - Well Service Group and Its Affiliate Acquired by Newpark Resources
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LONDON, UK / ACCESSWIRE / November 2, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Newpark Resources, Inc. (NYSE: NR), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=NR. The Company announced on October 31, 2017, that it has signed an agreement to acquire Well Service Group Inc. (WSG) and its affiliate Utility Access Solutions Inc. (UAS). The cash plus stock deal is valued approximately $75 million. For immediate access to our complimentary reports, including today's coverage, register for free now at:
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Details of the acquisition
The deal sees Newpark acquiring all the assets, operations, and employees of Pittsburgh, Pennsylvania based WSG, a containment and well site service Company and its affiliate UAS. Newpark and WSG have been working together since 2012, where WSG has been a strategic logistics and installation service partner for Newpark's Mats & Integrated Services segment. WSG has been providing various complementary services to the composite matting systems including: access road construction, site planning and preparation, environmental protection, fluids and spill storage/containment, erosion control, and site restoration services.
WSG and UAS have gained experience and established their position as a leading worksite service provider to operators drilling in the Marcellus and Utica basins. This experience and position has allowed both WSG and UAS to expand their business geographically and enter new customer markets including the utility transmission and distribution sector. The business of WSG and UAS has now expanded its footprint to cover the Northeast, Midwest, Rockies and West Texas regions.
Terms of the acquisition
As per the terms of the agreement, Newpark has agreed to pay approximately $75 million and is subject to adjustments with regards to the actual working capital considered. The total consideration would be paid in cash plus stock, out of which approximately $43 million will be in cash and $32 million via Newpark's stock. Newpark has arranged to finance the cash part of the offer price through revolving credit facility. The transaction is expected to close in November 2017. Newpark expects the deal to be accretive to its earnings in FY18.
Commenting on the acquisition, Matthew Lanigan, Vice President of Newpark and President of Mats and Integrated Services, said:
"Serving as our key partner in the significant Northeast market over the last five years, Well Service Group has demonstrated their unique capabilities and focus on superior customer service and continual innovation, a culture that fully aligns with Newpark. Through this acquisition, we see a meaningful opportunity to drive additional operational efficiencies for our existing matting customers, deliver further advancements of our industry-leading composite matting systems, accelerate our penetration of targeted end-user market opportunities, and create additional value for our shareholders."
Rich Brennan, President of the Well Service, stated:
"We are delighted to be part of the Newpark family and excited at the opportunities this union brings for our customers and employees."
About Newpark Resources, Inc.
Woodlands, Texas-based Newpark is a global technology leader in the oil and gas industry and has established itself as a global leader in fluid systems and matting products. The Company has a global presence with operations spread across North and South America, Europe, Middle-East, Africa, and Asia/Pacific.
Newpark Mats and Integrated Services provides industry leading composite matting solutions and work site construction services to diverse industry segments around the world. The Company's flagship DURA-BASE® Advanced-Composite Mat System provides a superior heavy duty working platform for temporary worksites and access roads and is used for many other industrial applications. The Company's other products include EPZ Grounding SystemTM, developed specifically for utility construction and maintenance projects, and DURA-BASE DEFENDER™ liner-less Spill Containment System, developed for superior environmental protection on the wellsite. These next-generation matting solutions are aimed at reducing customer operating costs, while improving safety and environmental protection.
Last Close Stock Review
At the closing bell, on Wednesday, November 01, 2017, Newpark Resources' stock fell 1.71%, ending the trading session at $8.60. A total volume of 538.18 thousand shares have exchanged hands. The Company's stock price soared 2.38% in the last three months, 17.81% in the past six months, and 44.54% in the previous twelve months. Moreover, the stock surged 14.67% since the start of the year. The stock currently has a market cap of $740.29 million.
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