Streicher Mobile Fueling Inc has completed the acquisition of Houston TX-based H & W Petroleum Co Inc, a marketer and distributor of lubricants, fuels, and petroleum products with operations in Houston, Lufkin, Freeport, Waco, Waxahachie, and Longview TX. Immediately before the closing, H & W purchased the operating assets and limited inventory of a related company, Harkrider Distributing Co Inc, a Houston-based company that markets and distributes dry cleaning solvents, chemicals, and petroleum products. The acquisition closed Oct 1, 2005.
Streicher acquired all of the capital stock of H & W and substantially all of the operating assets, inventory, accounts receivable, and related business of Harkrider. The original purchase price of approximately $6.3 million, which was based on a multiple of 4.5 times projected annualized EBITDA (earnings before interest, taxes, depreciation and amortization) of some $1.4 million, was adjusted to $5.964 million at closing by working capital and other closing adjustments. The purchase price was paid with a combination of cash, assumption of specified liabilities, and the issuance of $2.463 million of contingent two year 10% deferred payment promissory notes. These are subject to an earn-out provision based on the performance of H & W after the acquisition.
Also Oct 1, 2005, in connection with the acquisition of H &W, Streicher amended its credit facility with its primary lender, Wachovia Bank, National Association, increasing the facility to $20 million, obtaining more favorable terms and extending the maturity to Sept 26, 2007.