Newpark Resources Announces Agreement To Purchase Drilling Fluids Business

Sat Dec 29, 2012 10:45am EST

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THE WOODLANDS, Texas,  Dec. 29, 2012  /PRNewswire/ -- Newpark Resources, Inc.
(NYSE: NR) today announced that it has entered into a definitive agreement to
acquire substantially all assets and operations of Alliance Drilling Fluids, LLC
("Alliance"), a provider of drilling fluids, proppants, and related services
headquartered in Midland, Texas.  Under the terms of the agreement, cash
consideration at closing is expected to be approximately  $53 million, subject
to typical adjustments for actual working capital conveyed.  Additional
consideration up to  $4.3 million  may be payable based on the profitability of
the proppant business over the two year period following the acquisition. 
Alliance recorded revenues of  $89 million  and operating income of  $14 million
 for the year ended  December 31, 2011, of which approximately 50% of revenue
and 40% of operating income was attributable to the proppant business.  The
transaction will be funded through borrowings on Newpark's revolving credit
facility and is expected to close on  December 31, 2012.   

Paul Howes, President and Chief Executive Officer of Newpark, stated, "We are
pleased to announce this acquisition, which is consistent with our strategy to
grow our Drilling Fluids business. With their core business in the Permian Basin
and Eagle Ford Shale markets, the acquisition of Alliance significantly
increases our market share in these important regions.  Alliance, like Newpark,
is focused on water-based technologies and a commitment to provide operators
with best-in-class drilling fluids and engineering services.

"We expect the Alliance acquisition to be accretive to Newpark's earnings in
2013," concluded Howes.

Newpark Resources, Inc. is a worldwide provider of drilling fluids, temporary
worksites and access roads for oilfield and other commercial markets, and
environmental waste treatment solutions.  For more information, visit our
website at  

This news release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act that are based on management's current
expectations, estimates and projections. All statements that address
expectations or projections about the future, including Newpark's strategy for
growth, product development, market position, expected expenditures and
financial results are forward-looking statements. Some of the forward-looking
statements may be identified by words like "expects," "anticipates," "plans,"
"intends," "projects," "indicates," and similar expressions. These statements
are not guarantees of future performance and involve a number of risks,
uncertainties and assumptions. Many factors, including those discussed more
fully elsewhere in this release and in documents filed with the Securities and
Exchange Commission by Newpark, particularly its Annual Report on Form 10-K for
the year ended  December 31, 2011, as well as others, could cause results to
differ materially from those stated. These risk factors include, but are not
limited to, the availability of raw materials and skilled personnel, the impact
of restrictions on offshore drilling activity in the  Gulf of Mexico, our
customer concentration and cyclical nature of our industry, our market
competition, the cost and continued availability of borrowed funds, our
international operations, legal and regulatory matters, including environmental
regulations, inherent limitations in insurance coverage, potential impairments
of long-lived intangible assets, technological developments in our industry, the
impact of severe weather, particularly in the U.S. Gulf Coast, and our ability
to execute our business strategy and make successful capital investments and
business acquisitions.  Newpark's filings with the Securities and Exchange
Commission can be obtained at no charge at, as well as through our
website at

 Contacts:  Gregg Piontek, VP & CFO        
            Newpark Resources, Inc.        
            Ken Dennard, Managing Partner  
            Karen Roan, SVP                

SOURCE  Newpark Resources, Inc.
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