Flotek Industries Inc. (NYSE: FTK) has entered into a definitive agreement to divest its Drilling Technologies segment to National Oilwell Varco LP (NOV) for a total consideration of $17 million, subject to normal working capital adjustments. The transaction is expected to close by mid-May. Proceeds will go towards reducing the outstanding debt on the company’s balance sheet.
John Chisholm, Flotek's Chairman, President and Chief Executive Officer commented, "As we began our internal review of our business segments roughly a year ago, we have analyzed our current positioning, future opportunities, the broader energy market, and listened to our shareholders. This process has led us to arrive at this point which marks a transformation from a diversified oilfield service company into an asset-light, data and technology focused custom chemistry provider with an expanding set of global energy and industrial end markets."