Quality Distribution announced it has entered into definitive agreements to acquire the operating assets of Wylie Bice Trucking, LLC (Bice) and RM Resources, LLC (RM) for an aggregate purchase price of $79.3 million, plus potential additional consideration of $19 million, if certain future operating and financial performance criteria are satisfied. The transactions are expected to close by the end of the second quarter.
Headquartered in Killdeer, ND, Bice is a leading provider of transportation services to the 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 four existing salt water injection wells owned and operated by RM.
Bice operates two trucking terminals in North Dakota utilizing approximately 500 drivers, making it one of the largest haulers of fresh and disposal water and oil in the Bakken shale. Bice is principally an asset light business as the company primarily utilizes independent contractors who own their own equipment. RM has four existing disposal wells and is expected to add another well prior to the anticipated closing of the acquisitions; RM is required to deliver a sixth well within 6 months of the anticipated closing date, adding significant disposal capacity.
“The acquisition of Bice and RM represents the single-most significant step in expanding and diversifying our energy logistics business,” said Gary Enzor, Quality’s CEO. “The Bice and RM operations are top-tier transportation and disposal well providers in the fast growing Bakken shale region, and we are confident that we can build on their already solid platform. This transaction also supports our strategy to broaden our reach into key oil-rich shales. When we combine this Bakken acquisition with our existing Eagleshale presence, Quality’s energy logistics business will be more diversified and balanced between oil producing fields and our predominantly gas producing presence in the Marcellus shale. We are confident these transactions will further strengthen our customer offering, as we are fast becoming a water and oil hauling logistics solutions provider across multiple shales on a more national scale.”
Wylie C. Bice, president of Bice, stated: “We believe that Quality is an ideal partner for us and we are excited about joining the team. Opportunities in the Bakken shale continue to grow, and combining with Quality provides us with access to growth capital and enables us to leverage their capabilities to capitalize on this dynamic market.”
Headquartered in Tampa, FL, Quality operates what it says is the largest chemical bulk tank truck network in North America through its wholly owned subsidiary, Quality Carriers, Inc.