Flotek Completes Triumph Acquisition
Flotek Industries, Inc. announced the completion of its acquisition of substantially all the assets of Triumph Drilling Tools for $31 million cash.
Triumph is a leading regional provider of down-hole rental equipment to the oil and gas industry. Triumph maintains an extensive inventory of drilling tools for lease or sublease to customers in Texas, New Mexico, Louisiana, Oklahoma and Arkansas. Triumph's rental products include stabilizers, drill collars, drilling jars, roller reamer and other specialized drilling tools. Triumph also provides bottom hole assembly design, inspection services and other related technical services. Triumph services numerous drilling contractors, directional drilling companies, major and independent operators. Audited financial statements of Triumph and unaudited proforma financial statements will be filed with the SEC within 75 days.
The acquisition was financed with an amended $56 million senior credit facility from Wells Fargo Commercial Banking in Houston. The senior credit facility is comprised of $36 million in term loans and a $20 million revolving credit facility. Initial borrowings under this facility were used to finance the acquisition of Triumph and repay Flotek's existing senior credit facility. In addition to significantly increasing the Company's working capital availability, Flotek's senior borrowing rates were reduced approximately 150 basis points as a result of the new financing.
Jerry D. Dumas, Flotek's Chairman and Chief Executive Officer, stated, "I am excited to start the year with the addition of Triumph Drilling Tools to our Flotek family. We are eager to begin integrating the Triumph assets and personnel. We have brought together an outstanding group of drilling tool operations and services over the last two years. Our focus in 2007 is geographic and product expansion coupled with increased tool utilization."
Flotek manufactures and markets innovative specialty chemicals, downhole drilling and production equipment, and manages automated bulk material handling, loading and blending facilities. It serves major and independent companies in the domestic and international oilfield service industry.
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Company: Triumph Drilling Tools more info
- Flotek Completes Triumph Acquisition (Jan 09)