Archer Daniels to Buy Flotek Unit for $175 Million
11 January 2019 - 11:40PM
Dow Jones News
By Colin Kellaher
Archer Daniels Midland Co. (ADM) on Friday said it agreed to buy
Flotek Industries Inc.'s (FTK) Florida Chemical Co. unit for $175
million in cash.
The Chicago agribusiness giant said the acquisition of Florida
Chemical, which specializes in citrus-based flavors and fragrances,
expands its flavors offering, which currently includes areas such
as vanilla and mint.
Flotek, a Houston-based supplier of chemistry and services to
the oil and gas industries, said it will use proceeds from the sale
to pay off its roughly $50 million credit facility balance. The
company said may also invest $20 million to $30 million in organic
growth capital projects.
ADM said about 75 Florida Chemical employees with transfer to
the company as part of the deal, which it expects to complete in
the first quarter.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
January 11, 2019 07:25 ET (12:25 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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