Boston, MA 08/26/2014 (wallstreetpr) – Nuverra Environmental Solutions Inc (NYSE:NES) announced the key updates on its agreement to divest Thermo Fluids Inc. Initially, VeroLube USA, Inc. decided to buy Thermo Fluids for $175 million. Now, the acquirer has reduced the purchase price to $145 million. The revised purchase price will also include a stock component exceeding the initial agreed figure of $10 million. The deal of TFI is expected to close on September 30, 2014.
The financing strategy
VeroLube informed Nuverra Environmental Solutions Inc (NYSE:NES) that the debt component of financing strategy is finalized whereas the equity component will be finalized in the coming weeks. Nuverra has yet not agreed to the revised proposal. It is evaluating the revised proposal and if it doesn’t find it suitable it can start with the negotiations with the other interested parties from August 30, 2014.
Other significant updates
Apart from the information on divesting Thermo Fluids, Nuverra provided with the interim updates on its key initiatives. Nuverra started with the new initiative of rationalizing its revenue in the second quarter of 2014. It resulted in lower revenues in the second quarter results. However, it expects the growth to return as the pricing improves, and the business mix starts showing its results.
The expectations
As per the unaudited July results and preliminary interim August results, Nuverra Environmental Solutions Inc (NYSE:NES) is witnessing an improvement in the operations in the Core Share Solutions Segment. The revenues are expected to rise by 10% as compared to the average monthly revenue in the last quarter. It further expects to report strong growth in disposal volumes. Also, the rental activity can get a boost in the current quarter. Nuverra is moving firm with its plan of starting the treatment facility in the Bakken Shale in the last quarter of 2014. The TFI segment that suffered from fire shutdown has re-opened in July and is expected to operate at full capacity in the month of September.
