PNC Provides Financing to Support Flotek Acquisition
Flotek Industries announced that, through a wholly-owned subsidiary, the company has signed a definitive agreement to immediately acquire all of the outstanding stock of Florida Chemical Company, a processor of citrus oils and a pioneer in solvent, chemical synthesis and flavor/fragrance applications from citrus oils from facilities in Florida and Texas.
Under the terms of the agreement, Flotek will pay $49.5 million in cash and 3,284,180 shares of Flotek common stock for the outstanding shares of privately-held Florida Chemical.
In conjunction with the acquisition Flotek has entered into an amended and restated credit agreement with PNC Bank. Under the terms of the facility, PNC has agreed to increase the company’s total facility to $125 million comprised of a $50 million term loan and a $75 million revolving credit facility. Flotek intends to fund the cash portion of the acquisition through the proceeds from both the term loan and revolving credit facility.
Previously on abfjournal.com: