GulfMark Asset Holdings, a subsidiary of Adams Resources & Energy, recently completed the acquisition of Firebird Bulk Carriers and Phoenix Oil, both headquartered in Humble, Texas, for approximately $33 million.
The aggregate purchase price includes $32 million in cash and $500,000 in Adams Resources common stock, the company said.
“Joining forces with Firebird and Phoenix is a great opportunity for GulfMark to expand our value chain and market impact, with numerous operating synergies benefiting the combined companies immediately upon close,” said Greg Mills, president of GulfMark Energy, a crude oil marketing and transportation company based in Houston. “The leadership and employees of Firebird and Phoenix bring a wealth of knowledge, and a history of excellent customer service, which align perfectly with the values of GulfMark and Adams companies.”
Firebird is an interstate bulk motor carrier of crude oil, condensate, fuels, oils, and other petroleum products. The company operates more than 100 tractors, largely in the Eagle Ford basin. Its Texas locations include Humble—a Houston-area suburb—George West, Dilley, Carrizo Springs, Bryan, and Brownsville.
Phoenix recycles and repurposes off-spec fuels, lubricants, crude oil, and other chemicals from producers in the United States.
“We are very excited to have the teams from both Firebird and Phoenix join the Adams family of companies,” said Kevin Roycraft, CEO and president of Adams Resources, whose subsidiaries include Service Transport Company, National Tank Truck Carriers’ 2021 North American safety champion in the Harvison division. “This acquisition will be immediately accretive to earnings and cash flow. We expect these companies to increase our annual adjusted cash flow by over 30% while diversifying GulfMark’s service offerings to our customers.
“We believe this transaction represents a key milestone toward our continued efforts to generate long-term cash flow, prudently grow this business, and provide value to shareholders.”
Adams Resources also extended inducement awards and approved grants of $500,000 in restricted stock units to Firebird and Phoenix executives Trey Bosard and Tyler Bosard, who accepted employment agreements with Phoenix, the company reported. Trey Bosard will serve as Phoenix president and Tyler Bosard will serve as vice president of the southern region.
“I want to thank our team and their families for all the years of service,” said Scott Bosard, president of Firebird. “Their dynamic abilities and positive attitudes will bring immediate results to Adams and GulfMark.
“We look forward to the opportunities that will come along with these expanded capabilities.”