LONGMONT, Colo. - Enservco (NYSE:ENSV) Corporation (NYSE American: ENSV), a provider of well-site services to the oil and gas industry, has announced its agreement to acquire Buckshot Trucking LLC, a logistics company based in Fort Lupton, Colorado. The acquisition, valued at $5 million, includes $3.75 million in cash and the remainder in Enservco stock, with a potential additional performance payout of up to $0.5 million.
The transaction is expected to close by the end of the second quarter, pending Enservco stockholder approval and the company's ability to secure the necessary capital through equity or debt financing.
Buckshot Trucking, founded in 2017, specializes in hot shot trucking, dedicated freight, and less-than-truckload services within the oil and gas sector. The company reported unaudited 2023 earnings before interest, tax, depreciation, and amortization (EBITDA) of approximately $2.3 million on revenues of $8.2 million.
Enservco's Chairman and CEO, Richard A. Murphy, expressed enthusiasm for the acquisition, highlighting the strategic transformation it represents for the company by entering the logistics business. He noted that Buckshot's addition will provide year-round growth opportunities and operational and financial visibility, enhancing services for Enservco's customer base and improving financial predictability.
Buckshot's founders, Tony Sims and Jim Fate, will continue to lead the business post-acquisition, aiming to leverage Enservco's operational footprint for expansion.
The move comes as Enservco recently reported improved operational performance in 2023 and a positive start to 2024. Murphy anticipates that integrating Buckshot will significantly improve Enservco's financial results for 2024 and support further growth in subsequent years.
This strategic acquisition is intended to create a new operating division for Enservco, complementing its existing market position in hot oiling, acidizing, and frac water heating services.
The information in this article is based on a press release statement from Enservco Corporation.
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