NPK International Inc. (NPKI): M&A transaction — Newpark completes sale of Excalibar and Conroe facility for nearly $80M net cash

NPK International Inc.

Sold Excalibar industrial mineral grinding assets to Cimbar Resources for $48M base price plus inventory adjustment; also sold Conroe, TX blending facility.
Combined divestitures expected to generate nearly $80M net cash, including $63M received at closing.
Proceeds to be used for debt reduction, higher-return investments, and share repurchases.
Newpark agreed to 4-year non-compete and will buy at least 95% of its U.S. barite from Cimbar.
Pro forma net cash from Excalibar alone estimated at $59.3M, based on Sept 30 inventory.

Key facts

Extracted from this filing and checked against the source text.

M&A Transactions SEC 8-K Item 2.01/5.01 confidence 0.9

NPK International Inc. completed a disposition involving Cimbar Resources, INC. for $48 million in cash (closed 2022-11-30).

Action: disposition
Counterparty: Cimbar Resources, INC.
Consideration: $48 million in cash
Closing: 2022-11-30

Exact text from the filing

INC. (“Purchaser”) pursuant to an asset purchase agreement to which Excalibar and the Purchaser are parties dated as of October 19, 2022 (the “Agreement”). The sales price was $48 million in cash, adjusted by an amount equal to the excess or deficit, as applicable, in inventory value at closing based on a targeted amount of inventory value of $24.5 million.

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Source: SEC EDGAR

accession 0000071829-22-000187

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