Newpark Resources to sell Environmental Services business
Newpark Resources, Inc. has reached an agreement to sell its United States Environmental Services business to Trinity TLM Acquisitions, LLC.
Under the terms of the agreement, Newpark will receive $81.5 million in cash, subject to a working capital adjustment and could potentially earn up to an additional $8 million under the terms of a five-year earn out provision in the agreement. Trinity intends to combine the acquired operations with Trinity Storage Services, L.P., a waste disposal business based in Texas.
The sale is expected to close by the end of 2007, and is subject to customary conditions, including approval by Newpark’s lenders, regulatory approvals and the satisfactory completion of certain environmental due diligence by Trinity. The Company intends to use the net proceeds from the sale to pay down debt and for other general corporate purposes.
In March 2007, the Company had concluded that the Environmental Services business did not fit its long-term growth strategy.