Newpark Resources buys Well Service Group for $75M

By Newpark Resources | October 31, 2017

Newpark Resources Inc. today announced that it has entered into definitive agreements to acquire substantially all of the assets, operations and employees of the Well Service Group Inc., a containment and well site service company based near Pittsburgh, Pennsylvania, and its affiliate Utility Access Solutions Inc. for approximately $75 million

Since 2012, WSG has been a strategic logistics and installation service partner for Newpark's Mats and Integrated Service segment, providing a variety of complementary services to the composite matting systems, including access road construction, site planning and preparation, environmental protection, fluids and spill storage or containment, erosion control and site restoration services.  Building upon their position as a leading worksite service provider to operators drilling in the Marcellus and Utica basins, the combined WSG and UAS business has expanded geographically and entered new customer markets, including the utility transmission and distribution sector. The combined business now maintains a footprint that covers the Northeast, Midwest, Rockies and West Texas regions. 

Under the terms of the agreement, total consideration at closing is expected to be approximately $75 million, subject to typical adjustments for actual working capital conveyed, which will include approximately $43 million of cash consideration and $32 million of common equity of Newpark Resources. The cash consideration will be funded through borrowings on Newpark's revolving credit facility and the transaction is expected to close in November 2017.  The Company expects the acquisition to be accretive to Newpark earnings in 2018.

Matthew Lanigan, Newpark vice president and president of Mats and Integrated Services, stated, "We are very pleased to announce this acquisition, which serves as another critical step in the execution of our long-term mats strategy. Serving as our key partner in the significant Northeast market over the last five years, Well Service Group has demonstrated their unique capabilities and focus on superior customer service and continual innovation, a culture that fully aligns with Newpark. Through this acquisition, we see a meaningful opportunity to drive additional operational efficiencies for our existing matting customers, deliver further advancements of our industry-leading composite matting systems, accelerate our penetration of targeted end-user market opportunities, and create additional value for our shareholders."

Rich Brennan, president of the Well Service Group added, "We are delighted to be part of the Newpark family and excited at the opportunities this union brings for our customers and employees."

Newpark Resources is a worldwide provider of value-added drilling fluids systems and composite matting systems used in oilfield and other commercial markets.