Quality Distribution Inc. on Tuesday, June 12, announced that it has completed its acquisition of the operating assets and rights of RM Resources. Together with the closing of the acquisition of certain operating assets of Wylie Bice Trucking on June 1, the aggregate purchase price for the combined businesses is about $81.5 million plus potential additional consideration of $19 million if certain future operating and financial performance criteria are satisfied.
“A year ago, we embarked on a growth strategy to enter into the emerging frac shale energy market, with the intention of providing fluid hauling and disposal services in multiple shale regions,” says Gary Enzor, Quality chief executive officer. “The Bice and RM acquisitions represent one of our most significant steps in this strategy by diversifying our energy logistics business and broadening our reach into the oil rich Bakken shale. We are excited about the growth prospects that well-established operations like Bice and RM bring to our shareholders.”
Quality said that on a combined basis for the 12-month period ended March 31, the Bice and RM businesses generated about $129.1 million of revenue and $15.2 million of adjusted EBITDA.
Headquartered in Killdeer, N.D., Bice is a provider of transportation services to the unconventional oil and gas industry within the Bakken shale region, primarily hauling fresh water, flowback and production water, and oil for numerous energy customers. The flowback and production water Bice hauls is primarily disposed of utilizing five existing salt water injection wells owned and operated by RM.
Bice operates two trucking terminals in North Dakota utilizing about 500 drivers. The company is principally an asset-light business that uses owner-operators. RM has five existing disposal wells and is required to deliver a sixth well within six months of the closing date, adding disposal capacity.
