Newpark Acquires Italian Drilling Fluids Company
Newpark Resources, Inc. has completed the acquisition of Ava, S.p.A., a privately owned provider of drilling fluids headquartered in Rome, Italy in a transaction valued at euro 7.5 million. Consideration for the sale included euro 6.0 million in cash and 170,704 shares of Newpark common stock.
Newpark Chairman and CEO James D. Cole commented: "Our objective in the transaction is to assist Ava in expanding its operations within its primary markets in Eastern Europe, the Mediterranean, and North Africa. Newpark will provide Ava access to technology-oriented products and services developed and proven by Newpark in the North American market in order to broaden Ava's product offerings. In addition, we expect that the transaction will provide the opportunity for introduction of other Newpark products and services into the European and North African markets." The transaction is expected to be accretive to Newpark's fiscal year 2002 earnings.
Ava was founded in 1954 and provides drilling fluids and related products to exploration companies in the Mediterranean, Eastern Europe, and North Africa.