HOUSTON, March 1, 2019 /PRNewswire/ -- Flotek Industries,
Inc. (NYSE: FTK) ("Flotek" or the "Company") today announced the
completion of the sale of Florida Chemical Company, LLC ("FCC" or
"Florida Chemical"), its Consumer and Industrial Chemistry
Technologies segment, to Archer Daniels Midland Company (NYSE: ADM)
("ADM").
Under the previously disclosed terms of the transaction, ADM
purchased FCC for $175 million in
cash, subject to post-closing working capital and other
adjustments. After transaction fees and a working capital
adjustment, net proceeds at closing total approximately
$165 million. Additionally, Flotek
and ADM have entered into long-term reciprocal supply agreements.
The first secures Flotek's long-term supply of citrus terpenes, and
the second designates that Flotek will manufacture differentiated
chemistries for Florida Chemical's industrial customers. Pro-forma
financials will be disclosed in a Form 8-K. The Company's year-end
earnings conference call will be held on Thursday, March 7, 2019, at 9:00 a.m. CST.
Flotek has paid off the balance of the Company's outstanding
credit facility totaling $53.8
million. The Strategic Capital Committee (the "Committee"),
chaired by independent director David
Nierenberg, is currently evaluating and will make
recommendations to the Board of Directors regarding the manner in
which the Company will deploy the remaining net proceeds. The range
of options considered by the Committee include returning capital to
shareholders, executing share buybacks, funding previously
identified organic growth projects, making additional investments
in the business that increase long-term shareholder value and
exploring other alternatives.
About Flotek Industries, Inc.
Flotek develops and
delivers prescriptive, reservoir-centric chemistry technologies to
oil and gas clients designed to address every challenge in the
lifecycle of the reservoir and maximize recovery in both new and
mature fields. Flotek's inspired chemists draw from the power of
bio-derived solvents to deliver solutions that enhance energy
production. Flotek serves major and independent energy producers
and oilfield service companies, both domestic and international.
Flotek Industries, Inc. is a publicly traded company headquartered
in Houston, Texas, and its common
shares are traded on the New York Stock Exchange under the ticker
symbol "FTK." For additional information, please visit Flotek's web
site at www.flotekind.com.
About ADM
For more than a century, the people of
Archer Daniels Midland Company (NYSE: ADM) have transformed crops
into products that serve the vital needs of a growing world. At the
end of 2018, we were one of the world's largest agricultural
processors and food ingredient providers, with approximately 32,000
employees serving customers in more than 170 countries. With a
global value chain that includes approximately 450 crop procurement
locations, 270 food and feed ingredient manufacturing facilities,
46 innovation centers and the world's premier crop transportation
network, we connect the harvest to the home, making products for
food, animal feed, industrial and energy uses. Learn more at
www.adm.com.
About Florida Chemical Company, LLC
Founded in 1942,
Florida Chemical designs and delivers high-quality products that
meet the demands of a variety of consumer and industrial
applications, including food and beverage, fragrance, and household
and industrial cleaning products. Sourcing citrus oil domestically
and internationally, it is one of the largest processors in the
world.
Forward-Looking Statements
Certain statements set
forth in this Press Release constitute forward-looking statements
(within the meaning of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934) regarding
Flotek Industries, Inc.'s business, financial condition, results of
operations and prospects. Words such as expects, anticipates,
intends, plans, believes, seeks, estimates, will, expected, should,
could, considered and similar expressions or variations of such
words are intended to identify forward-looking statements, but are
not the exclusive means of identifying forward-looking statements
in this Press Release.
Although forward-looking statements in this Press Release
reflect the good faith judgment of management, such statements can
only be based on facts and factors currently known to management.
Consequently, forward-looking statements are inherently subject to
risks and uncertainties, and actual results and outcomes may differ
materially from the results and outcomes discussed in the
forward-looking statements. Factors that could cause or contribute
to such differences in results and outcomes include, but are not
limited to, demand for oil and natural gas drilling services in the
areas and markets in which the Company operates, competition,
obsolescence of products and services, the Company's ability to
obtain financing to support its operations, environmental and other
casualty risks, and the impact of government regulation.
Further information about the risks and uncertainties that may
impact the Company are set forth in the Company's most recent
filings on Form 10-K (including without limitation in the "Risk
Factors" Section), and in the Company's other SEC filings and
publicly available documents. Readers are urged not to place undue
reliance on these forward-looking statements, which speak only as
of the date of this Press Release. The Company undertakes no
obligation to revise or update any forward-looking statements in
order to reflect any event or circumstance that may arise after the
date of this Press Release.
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SOURCE Flotek Industries, Inc.