Quality Distribution acquires Trojan Vacuum Services
Quality Distribution has announced that its wholly-owned subsidiary, Quality Carriers has purchased the operating assets of Trojan Vacuum Services (Trojan) from Wiley Lease for $8.7m in cash. An additional $1.0m in cash consideration may be payable to Wiley Lease in connection with the acquisition, contingent upon Trojan meeting certain future financial performance criteria.
Headquartered in Pleasanton, Texas, Trojan provides transportation services to the oil and gas industry within the Eagle Ford shale region, primarily hauling flow-back and production water for various energy customers. In conjunction with the transaction, Quality Distribution 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 has retained.
For its most recent fiscal year ended December 31, 2011, Trojan had revenues of approximately $13.5m. Quality Distribution 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. Trojan broadens our customer base and gains us exclusive access to disposal wells,” said Gary Enzor, Chief Executive Officer of Quality Distribution. “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.”