Newpark Resources, Inc. (NYSE: NR) has completed the sale of its Fluids Systems segment to SCF Partners, a leading private equity firm in the global energy industry. This strategic divestiture marks the culmination of a two-year transformation aimed at streamlining Newpark’s operations and enhancing profitability.
Matthew Lanigan, President and CEO of Newpark, highlighted the significance of the sale, stating, “This transaction allows us to fully focus on expanding our specialty rental and services business in worksite access and critical infrastructure markets. We’ve generated over $200 million from divestitures and working capital reductions, which has fueled the growth of our Industrial Solutions business, reduced debt by $150 million, and returned $50 million to shareholders through share buybacks.”
As part of its new strategic direction, Newpark plans to rebrand and pursue a reclassification to better align with its growth in non-oilfield markets. Lanigan emphasized that the sale will simplify the business model and improve profitability potential, positioning Newpark for future success.
Deviyani Misra-Godwin, Director at SCF, expressed excitement about the acquisition, noting that Newpark Fluids Systems’ global reach, safety performance, and strong position in the geothermal sector will drive growth in the evolving energy landscape. David Paterson, CEO of Newpark Fluids Systems, echoed these sentiments, looking forward to accelerated growth under SCF’s leadership and industry expertise.
