Quality Distribution Inc today announced that certain of its wholly-owned subsidiaries have purchased the operating assets of Dunn's Tank Service Inc and the operating assets and rights of Nassau Disposal Inc for an aggregate cash purchase price of $34.3 million. An additional $3.6 million in cash consideration may be payable if certain future operating and financial performance criteria are satisfied.
Headquartered in Velma OK, Dunn's provides transportation services to the unconventional oil and gas industry primarily within the Woodford and Utica shales, primarily hauling flowback and production water for various energy customers. The flowback and production water that Dunn's hauls is primarily disposed of utilizing two existing salt water disposal wells owned and operated by Nassau.
"The acquisition of Dunn's and Nassau represents another important step in expanding and diversifying our energy logistics business,” says Gary Enzor, Quality Distribution chief executive officer. “The Woodford and Utica shales are growing, and Dunn's is well positioned to capitalize on these oil rich areas. We are impressed with Todd Dunn and his operating team and are confident this acquisition will further accelerate our growth in the unconventional energy market."
On a combined basis for its most recent fiscal year ended December 31, 2011, Dunn's and Nassau had revenues of approximately $17.5 million. Quality expects the acquisition to be accretive to earnings in 2012.