Proceeds from the sale will go toward reducing outstanding debt on Flotek's balance sheet, according to the company release.
Flotek's drilling tech division has been a foundation for the company for more than a decade, said John Chisholm, chairman, president and CEO, adding that the decision for the divestiture is in-line with ongoing initiatives to improve the value of the company.
"As we began our internal review of our business segments roughly a year ago, we have analyzed our current positioning, future opportunities, the broader energy market and listened to our shareholders," Chisholm said in a statement. "This process has led us to arrive at this point which marks a transformation from a diversified oilfield service company into an asset-light, data and technology focused custom chemistry provider with an expanding set of global energy and industrial end markets."
Flotek said it expects the transaction to close by mid-May.
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