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.