Flotek Industries Inc. (NYSE: FTK) said July 27 it intends to acquire International Polymerics Inc. (IPI) and affiliates for cash and stock.
Houston's Flotek will pay about $7.9 million in cash and issue roughly 248,000 shares of common stock for the purchase of the natural polymers supplier. The acquisition also includes about $1.2 million in working capital.
Founded in 2004 by Donald Bramblett, IPI president, the company is one of the largest domestic suppliers of natural polymers, including guar, to the industry, according to a press release.
The company is based in Dalton, Ga., with a distribution center in the Permian Basin in Monahans, Texas. IPI's proprietary guar processing systems have provided high-quality guar powder and slurry to oil and gas clients for nearly a decade in nearly every producing basin in the U.S., the release said.
Upon closing, IPI will become a part of Flotek's energy chemistry reporting segment. Bramblett will remain the president of IPI and will report to Josh Snively, executive vice president of Flotek who oversees the company's chemistry manufacturing efforts.
The transaction is scheduled to close coincident with the execution of the stock purchase agreement. The deal will be treated as an asset purchase for income taxation purposes, the release said.
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