Enservco Corporation, a provider of well-site services to the oil and gas industry, has announced its agreement to acquire Buckshot Trucking, a Colorado-based logistics company. The acquisition, valued at USD 5 million, included USD 3.75 million in cash and the remainder in Enservco stock, with a potential additional performance payout of up to USD 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,” reported Investing.com on the matter.
Buckshot Trucking, founded in 2017, has established its specialisation in hot shot trucking, dedicated freight, and less-than-truckload services within the energy sector. The company reported unaudited 2023 earnings before interest, tax, depreciation, and amortisation (EBITDA) of approximately USD 2.3 million on revenues of USD 8.2 million.
“By providing fair pricing, honesty, and dependable services in a highly competitive market, our company has experienced consistent and aggressive growth with increases in our customer base and revenues month after month, quarter after quarter,” Buckshot explained its operations in the following words on their website, while adding, “To date, our company has grown to offer multiple service lines in multiple sectors. Our simple approach to quality service, safety, and dependability has earned Buckshot Trucking LLC the opportunity to provide services across the United States to a diverse group of over 100 customers.”
Buckshot, as of March 2024, is providing trucking solutions like Flatbed (an open trailer where equipment can be loaded from all sides), Step Deck (tailored to haul a higher load without having to buy permits for the load), Dry Van (enclosed trucking method to shield sensitive shipments from weather hazards like high winds, rain, or direct heat), Refrigerated Trucking, Hot Shot Trucking (specialised in delivering time-sensitive loads, to save a company from situations like downtime or production shut down) and Trailer Mounted Forklift.
Enservco’s Chairman and CEO, Richard A. Murphy, while expressing enthusiasm for the acquisition, highlighted the strategic transformation it represents for the company by entering the logistics business. Murphy further noted that Buckshot’s addition will provide year-round growth opportunities and operational and financial visibility, while enhancing services for Enservco’s customer base and improving financial predictability.
As per the reports, Buckshot’s founders, Tony Sims and Jim Fate, will continue to lead the business post-Enservco acquisition, aiming to leverage the latter’s operational footprint for expansion.
The acquisition comes in the background of Enservco reporting improved operational performance in 2023. Murphy anticipated that integrating Buckshot would massively improve Enservco’s financial results for 2024 and support further the company’s 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 venture stated further.