Business
SMG Industries Announces the Signing of a Definitive Agreement to Acquire Trinity Services LLC
SMG Industries Announces the Signing of a Definitive Agreement to Acquire Trinity Services LLC.
About this update from Smg Industries, Inc.
[{"type":"text","content":"Acquisition of This 20 Year Old Oilfield Services Company Operating in the Haynesville Shale Provides Diversification and New CustomersHOUSTON, TX / ACCESSWIRE / June 6, 2019 / SMG Industries, Inc. ("SMGI" or the "Company") (OTCQB: SMGI), a growth-oriented oilfield services company operating in the Southwest United States announced today the signing of a definitive agreement to acquire 100% of the membership interests of Trinity Services LLC ("Trinity") which currently operates in the Haynesville shale area of East Texas and Western Louisiana. This acquisition expands the Company's service footprint into this new area with an existing client base. On an unaudited basis, Trinity generated revenues of approximately $5.4 million in fiscal year 2018, up approximately 80% from 2017 revenues.Trinity's oilfield services focus and highlights include: Drilling segment focused on building drilling locations, including pad development, pits and lease access roads for oil and gas companies through its fleet of heavy equipment including excavators, tractors, compactors and motor graders, Production market segment focused on workover and well site services through its workover and swab rigs, Over 20 years of field service operations serving the Haynesville, Cotton Valley and Bossier and Smackover formations in East Texas and NW Louisiana areas serving oil and gas operators, Trinity's facilities are strategically located in Waskom, Texas bordering Louisiana, near the resource plays, Reference customer base with cross-selling opportunities for our existing divisions, and, Expands the Company's diversification on the production side of the business.Mr. Matt Flemming, CEO of SMGI, stated, "The acquisition of Trinity Services will approximately double our Company's current revenues and allows us to immediately cross sell a broader product offering across our customer bases. We anticipate these efforts will result in increased utilization for our frac water management business, Momentum Water Transfer Services, currently operating in South Texas." Mr. Flemming also stated, "The Company believes the Trinity acquisition is immediately accretive to shareholders, improves equity on the balance sheet and assists SMGI in sourcing additional acquisition opportunities."Mr. Stephen Christian, EVP of Operatio...