Newpark agrees to sell environmental services business

Newpark Resources, Inc. has reached a new agreement to sell its U.S. Environmental Services business to a subsidiary of CCS Inc., a provider of waste and environmental services headquartered in Calgary, Alberta Canada.

Under the terms of the new agreement, Newpark will receive $85 million in cash, subject to adjustment as provided in the agreement. This compares to a sales price of $81.5 million plus a five-year earn out provision under the previous agreement with Trinity TLM Acquisitions, LLC (Trinity). Prior to the execution of the agreement with CCS, Newpark executed an agreement that terminated Newpark’s previous agreement with Trinity. This termination agreement contains an incentive for Trinity to support the transaction with CCS by providing for a transaction fee in the amount of $2.5 million payable to Trinity from Newpark in certain circumstances.

The sale is expected to close in July 2008 and is subject to customary conditions, regulatory approvals and the satisfactory completion of due diligence by CCS.