Quality Distribution Inc announced that its wholly-owned subsidiary, Quality Carriers Inc, has purchased the operating assets of Trojan Vacuum Services from Wiley Lease Co Ltd for $8.7 million in cash. An additional $1.0 million in cash consideration may be payable to the seller in connection with the acquisition, contingent upon Trojan meeting certain future financial performance criteria.
Headquartered in Pleasanton TX, Trojan provides transportation services to the unconventional oil and gas industry within the Eagle Ford shale region, primarily hauling flowback and production water for various energy customers. In conjunction with the transaction, Quality has entered into a water disposal services agreement for the exclusive right to utilize Wiley Lease’s disposal water capacity within its fluid disposal wells, which Wiley Lease retained.
For its most recent fiscal year ended December 31, 2011, Trojan had revenues of approximately $13.5 million. Quality expects the acquisition to be accretive to earnings beginning in the second quarter of 2012.
"The acquisition of Trojan is an important step in expanding our Energy Logistics business within the Eagle Ford shale,” says Gary Enzor, Quality Distribution chief executive officer. “Trojan broadens our customer base and gains us exclusive access to disposal wells. We are impressed with Trojan's operations and the level of service they provide to their customers, and are confident this acquisition will accelerate our growth in the energy market."
William O Wiley, president of Trojan, says: "We are excited about the opportunity to become part of the Quality family, and we believe this partnership will enable us to capitalize on a rapidly growing market."