HOUSTON, Jan. 16, 2014 /PRNewswire/ -- Flotek Industries, Inc. ("Flotek" or the "Company') (NYSE: FTK - News) today announced the closing of its purchase of Eclipse IOR Services, LLC ("EOGA") and plans to expand its Enhanced Oil Recovery ("EOR") platform.
Total consideration for the purchase was $7,000,000, including $5.25 million in cash and 94,354 shares of Flotek Common Stock. The transaction is effective January 1, 2014. While final year-end financials are pending, the Company estimates EOGA's 2013 Net Income to be approximately $1.6 million.
"We are pleased to complete the acquisition of EOGA and delighted to welcome Jay Portwood, Ron Scott and the EOGA team to the Flotek family," said John Chisholm, Flotek's Chairman, President and Chief Executive Officer. "EOGA's expertise in Enhanced Oil Recovery processes and the use of polymers to improve performance of EOR projects is an important addition to Flotek's growing inventory of EOR services. Not only does EOGA add leading edge products and services to our EOR offerings, the addition of Jay, Ron and the EOGA team should allow Flotek to leverage their expertise to grow market share for our other EOR chemistry applications. With demand for EOR services expected to accelerate, we will continue to be opportunistic in growing our breadth of EOR services."
"Ron and I, along with the entire EOGA team, are excited to join Flotek and work side-by-side to create a leading, world-class EOR services company," said J.T. "Jay" Portwood, President of EOGA. "We have worked closely with Flotek and its chemistry research group for several years and believe the opportunities to offer value-added technologies to our existing EOR customers are significantly enhanced as we join forces. Flotek's chemistry expertise combined with our design and implementation services create an immediate leader in complex EOR projects, especially as it relates to water control and reservoir conformance. We look forward to being a part of the Flotek team for many years to come."