It’s official. The FTK stock was a trending ticker of the day. Well, according to Yahoo Finance, that is. On Friday, January 11th, Flotek Industries, Inc. (NYSE:FTK) announced plans to sell Florida Chemical Co LLC to Archer Daniels Midland Company (NYSE:ADM). The value of the deal was $175 million, paid in cash. On the news, FTK stock soared, ending the day up nearly a whopping 100%.
FTK Stock: A Day for the Books
Today, Flotek Industries said that it will sell its consumer and industrial chemical technologies segment to Chicago-based Archer Daniels. With the sale, Flotek Industries and Archer Daniels have moved into various long-term reciprocal supply agreements, and, as part of the deal, Flotek Industries will retain all patients.
If all goes as planned, the transaction will close in Q1 of 2019. Note, however, that it is subject to customary closing conditions. It’s also worth mentioning that Flotek, which is based in Houston, Texas, is forecasting to use the net proceeds to pay off its $50 million credit facility balance. Once the deal is closed though, Florida Chemical’s employees (around 75%) will transfer to Archer Daniels.
“We are very excited about our long-term relationship with Archer Daniels Midland,” said Flotek CEO John Chisholm. “This transaction has created a synergistic relationship that brings strategic benefits to each company.”
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The optimism doesn’t end with the two companies, however. In fact, the news seemed to please the market, and even that’s a slight understatement.
Crunch Time
According to Yahoo Finance, at market close, FTK stock was up 95.74%. Its trading price was $2.76. As of 7:32 PM, in the after-hours trade, Flotek Industries is up 0.72%.
The Takeaway
Are you surprised by Flotek Industries decision to sell Florida Chemical Co LLC to Archer Daniels Midland? Or, did you expect it? If not expect, do you understand it? Let us know in the comments below! And don’t forget to check back in next week for more stock news!
Featured image: DepositPhotos © londondeposit
