Forum Energy Technologies Closes Sale-Leaseback Transaction
November 30 2022 - 8:30AM
Business Wire
- Generates approximately $32 million in net proceeds
- Presents meaningful deleveraging opportunity
Forum Energy Technologies, Inc. (NYSE: FET) announced today that
it has closed a sale of four manufacturing and distribution centers
located in Texas and Louisiana. The properties will remain an
integral part of FET’s operations strategy going forward. In
connection with the sale, the Company entered into a long-term
lease agreement. The net sales proceeds from the transaction
totaled approximately $32 million.
Neal Lux, President and Chief Executive Officer, remarked, “This
transaction generates value for our stakeholders at an EBITDA
multiple over ten times future annual lease payments. These sale
proceeds and our projected second half 2022 free cash flow
represent a $60 to $70 million net debt reduction since June 30,
2022. Our capital light business model provides significant
flexibility to use the sale proceeds and free cash flow generated
to improve our balance sheet and fund growth opportunities.”
FET is a global company, serving the oil, natural gas,
industrial and renewable energy industries. FET provides value
added solutions that increase the safety and efficiency of energy
exploration and production. We are an environmentally and socially
responsible company headquartered in Houston, TX with
manufacturing, distribution and service facilities strategically
located throughout the world. For more information, please visit
www.f-e-t.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20221130005400/en/
Rob Kukla Director Investor Relations 281.994.3763
Rob.Kukla@f-e-t.com
Forum Energy Technologies (NYSE:FET)
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