Flotek Industries Inc. has entered into a definitive agreement to purchase substantially all of the assets of International Artificial Lift LLC (IAL), which is a developmental-stage company that specializes in the design, manufacturing and service of next-generation hydraulic pumping units (HPUs) that serve to increase and maximize production for oil and natural gas wells.
The acquisition of IAL provides Flotek with complete control over the manufacturing and service quality of a next-generation, proprietary design in the expanding HPU market. The IAL/Flotek HPU design features continuous horsepower with a patent-pending synchronized lifting system that allows operators to produce more efficiently and at a significantly reduced cost compared to other hydraulic lift designs.
Flotek provided total consideration of $2.25 million for the purchase of substantially all of the assets of IAL, including all intellectual property, finished goods and inventory. Flotek also assumed the lease on IAL's corporate headquarters in Boyd, Texas.