Flotek Industries Inc (NYSE:FTK) has an intention of acquiring International Polymerics. The acquisition will call for the payment of $7.9 million in cash by Flotek alongside 248,000 shares of common stock. John Chisholm, President Chairman and Chief Executive Officer of Flotek says it’s an honor for the company to play host to Donald and Mark’ founders of IP and their team.
Chisholm says that there have been notable efforts by the IP team over the years which have resulted in the building of a resilient business whose. Hence IP’s integration into Flotek’s family is significant given that it is the leading player in energy and textile trades. Its founder Donald Bramblett is also well-known for his expertise in natural polymers and guar which gives more power to Flotek’s leading oilfield chemistry research team.
Let’s explore the gains of the slated acquisition
The two companies have their strengths and expertise. IPI whose proprietary guar processing systems are of excellent quality has been serving a multitude of oil and gas clients for nearly a decade. It has a high strategic value from which Flotek will benefit as well as value-added oilfield chemistries.
Chisholm describes the acquisition as a significant element that will open doors to native polymer applications. Flotek will also benefit from the strategic location of the distribution center in Monahans, Texas, which will give the company an upper hand in terms of creating efficiencies in its regional chemistry operations. In any case, IPI has demonstrated a solid profitability record throughout its 12 years of operations.
Being the global developer of innovative oilfield technologies, it has served major and independent companies in the industry. It has a specialty in chemicals, down-hole drilling, and production equipment. Its acquisition of IPI is for purposes of improving business operations and efficiencies. This combined with Flotek’s innovative and distribution network will bring in significantly improved margins of the base business.
In other news, Flotek has confirmed the release of studies concerning the efficacy of the Company’s suite of Complex nano-Fluid® completion chemistries (“CnF®”). However, the Special Technical Committee reviewing the effectiveness of CnF® has retained the MHA. Nevertheless, there is much more about the study that can be on Flotek’s homepage.