NEWPARK RESOURCES ANNOUNCES DEFINITIVE AGREEMENT FOR THE SALE OF ITS MINERAL CRUSHING BUSINESS IN THE UNITED STATES

THE FORESTS, Texas, October 20, 2022 /PRNewswire/ — Newpark Resources, Inc. (NYSE: NR) (“Newpark” or the “Company”) announced today that it has entered into a definitive agreement to sell substantially all of the long-lived assets, inventory and operations of its Excalibar Mineral Milling Business (“Excalibar”) at Cimbar Resources, INC. (“Cimbar”), a mineral-based additive solutions company based in Chatsworth, GA.

From September 30, 2022Excalibar had about $65 million net capital employed. Under the terms of the agreement, Newpark expects to generate net cash of approximately $66 million through a combination of net cash proceeds at closing and net recoveries of certain retained assets and liabilities, including accounts receivable and accounts payable. As part of the sale transaction, Cimbar and Newpark have also agreed to enter into a long-term barite supply agreement for Newpark’s drilling fluids business in the United States, with an initial term of four years after closing of the transaction.

Matthew LaniganPresident and CEO of Newpark, said, “The sale of Excalibar is consistent with our stated strategy to transform our Fluids Systems business into a more focused, small capitalization business. We appreciate our dedicated Excalibar employees and thank them for their many years of valuable service to Newpark. We look forward to continuing to work with them and Cimbar under the barite supply agreement. »

The sale is expected to be completed in the fourth quarter of 2022 and remains subject to the closing conditions specified in the purchase agreement. Proceeds from the sale are expected to be used for general corporate purposes, including debt reduction, potential growth investments and/or share buybacks under the company’s current share buyback program. Company as the Company continues to execute its strategic plan.

PPHB is acting as financial advisor and Culhane Meadows PLLC as legal advisor to Newpark in this transaction.

Newpark Resources, Inc. is a geographically diverse supplier providing environmentally friendly products, rentals and services to a variety of industries including oil and gas exploration, power transmission and distribution , pipelines, renewable energy, petrochemical, construction and other industries. For more information, visit our website at www.newpark.com.

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, such as statements regarding the expected time of the closing of the sale, the amount of the sale proceeds and the use of proceeds from the sale. All statements other than statements of historical fact are forward-looking statements. Words such as “will”, “may”, “might”, “would”, “should”, “anticipate”, “believe”, “estimate”, “expect”, “plan”, “has intent” and similar expressions are intended to identify such forward-looking statements but are not the exclusive means of identifying them. These statements do not guarantee that our expectations will prove to be accurate and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed in greater detail elsewhere in this release and in Newpark’s filings with the Securities and Exchange Commission, in particular its Annual Report on Form 10-K for the fiscal year ended December 31, 2021, and its quarterly reports on Form 10-Q, and others, could cause actual plans or results to differ materially from those expressed or implied by such statements. These risk factors include, but are not limited to, the failure of the closing conditions to be satisfied; risks related to the ongoing conflict between Russia and Ukraine; the COVID-19 pandemic; the global oil and natural gas industry; the concentration of our customers and our dependence on the US exploration and production market; our international operations; operating risks present in the oil and natural gas industry and significant liability claims, including catastrophic well incidents; our contracts which can be terminated or reduced by our customers without penalty; expanding our product offering; our ability to attract, retain and develop qualified executives, key employees and qualified personnel; the price and availability of raw materials; business acquisitions and capital investments; our market competition; technological developments and intellectual property in our industry; extreme weather conditions, natural disasters and seasonality; our cost and continued availability of borrowed funds, including breach of covenants; environmental laws and regulations; our legal compliance; the inherent limits of insurance coverage; income taxes; cybersecurity breaches or business system disruptions; our restructuring activities; shareholder activists who may attempt to effect change in our Company or gain control of our Company; our ability to maintain compliance with the ongoing listing requirements of the New York Stock Exchange; and our amended and restated articles of association, which may limit our shareholders’ ability to obtain what those shareholders consider to be a favorable forum for disputes with us or our directors, officers or other employees. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities laws. Documents filed by Newpark with the Securities and Exchange Commission may be obtained free of charge at www.sec.govas well as on our website at www.newpark.com.

Contact:

Gregg Piontek

Senior Vice President and

Financial director

Newpark Resources, Inc.

[email protected]

281-362-6800

Quote

View original content: https://www.prnewswire.com/news-releases/newpark-resources-announces-definitive-agreement-to-sell-its-us-mineral-grinding-business-301655452.html

SOURCENewpark Resources, Inc.

Comments are closed.