HOUSTON, TX, Feb. 14, 2005 (MARKET WIRE) -- Flotek Industries Inc. has completed the previously announced acquisition of Spidle Sales and Services Inc.
The acquisition was financed with a new $13 million senior credit facility funded through Wells Fargo Commercial Banking in Houston. The new facility is comprised of an $8 million term loan and a $5 million revolving credit facility. Initial borrowings under this facility were used to finance the acquisition of Spidle and repay Flotek's existing senior credit facility. In addition to significantly increasing the Company's working capital availability, Flotek's senior borrowing rates were reduced approximately 300 basis points as a result of the new financing.
The purchase consideration for Spidle totaled $6.1 million cash, $1.275 million seller financing and 129,271 shares of common stock. Spidle will be merged with Turbeco into Flotek's drilling products segment.
"The new credit facility is a significant achievement, which will further strengthen our capital structure and lower our interest expense. The additional liquidity will enable our ongoing expansion in existing markets, and support our efforts to pursue opportunities in new markets," stated Jerry D. Dumas Sr., chairman and CEO of Flotek.
Spidle (www.spidle.com) is one of the premier downhole tool companies with rental, sales and manufacturing operations throughout the Rocky Mountains. Spidle serves both the domestic and international downhole tool markets with a customer base extending into Canada, Mexico, South America, Europe, Asia and Africa. Spidle operates in the energy, mining, water well and industrial drilling sectors.
Flotek (www.flotekind.com) is a publicly traded company involved in the manufacturing and marketing of innovative specialty chemicals, downhole drilling and production equipment, and management of automated bulk material handling, loading and blending facilities. It serves major and independent companies in the domestic and international oilfield service industry.
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