Houston-based SCF Partners has acquired Newpark Fluid Systems, an oil and gas and geothermal fluids solution business from Newpark Resources.

The base sale for the business is $127.5 million and the net sale consideration is the transaction is $56 million, Newpark said in its Sept. 13 release.

The $56 million net sale price reflects $70 million of cash proceeds received at closing, net of $19 million of foreign cash conveyed with the business, along with a $5 million interest-bearing seller note receivable, Newpark said.

SCF is adding to its portfolio Newpark Fluid System’s range of drilling and completion products and related technical services, according to the firm’s separate statement.

“Newpark Fluid Systems’ global footprint, top quartile safety performance, leading portfolio of technology and preeminent position in the growing geothermal space will accelerate success in the evolving energy landscape,” said Deviyani Misra-Godwin, director at SCF Partners.

The final purchase price remains subject to customary adjustments based on final working capital, accrued taxes and certain other liabilities, debt and cash conveyed at closing.

Alongside the sale, Newpark’s U.S. asset-based lending facility has been amended, reducing the size to $100 million from $175 million, among other change, the company said.

Newpark said it intends to use the proceeds from the sale toward organic investments in its composite matting fleet, opportunistic inorganic growth and share buybacks under its existing $50 million share repurchase authorization.

Newpark will also remain focused on acquiring complementary worksite access businesses in adjacent markets and remaining active under its share repurchase authorization.

Vinson & Elkins LLP acted as legal adviser to SCF in the transaction.

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