Flotek Industries Inc., a leader in technology-driven, specialty green chemistry solutions, recently entered into an agreement with ProFrac Holdings to expand the previously announced long-term supply agreement with one of ProFrac's affiliates.
The company anticipates that, after closing, the new expansion will increase revenue backlog by at least $1 billion, and up to $2.1 billion, over the next 10 years. As part of the transaction, at closing Flotek would issue to ProFrac notes convertible into Flotek's common stock with a maturity of one year, with the amount of notes based on the size of expansion. Flotek would also grant ProFrac the right to appoint two members to Flotek's board of directors, for a total of four out of seven directors.
Closing of the transaction is expected to occur in second quarter of 2022 and is subject to a vote of the shareholders of Flotek's common stock, as well as other customary conditions.
Flotek Industries Inc. creates solutions to reduce the environmental impact of energy on air, water, land and people. Flotek's Chemistry Technologies segment provides sustainable, optimized chemistry solutions that maximize their customer's value by elevating their environmental, social and governance (ESG) performance, lowering operational costs, and delivering improved return on invested capital. The company's proprietary green chemistries, specialty chemistries, logistics, and technology services enable its customers to pursue improved efficiencies and performance throughout the life cycle of its desired chemical applications program.