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SMG Industries, Inc. Announces the Acquisition of Momentum Water Transfer Services
SMG Industries, Inc. Announces the Acquisition of Momentum Water Transfer Services.
About this update from Smg Industries, Inc.
[{"type":"text","content":"\nFrac Water Transfer Company Represents New Platform for SMG in Frac Water Management  \n HOUSTON, TX, Dec. 10, 2018 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE – SMG Industries, Inc. (the \"Company\") (OTCQB: SMGI), a growing oilfield services company operating in the Southwest United States, today announced the acquisition of Momentum Water Transfer Services, LLC. (“Momentum”) which provides high volume, frac water transfer services via its above-ground temporary infrastructure to E&P companies at location for their fracing and well completion.   The Deal Summary: Acquired 100% of the membership interests for a total purchase price of $1,395,750. Terms were $362,000 in cash at closing, $800,000 in a 6% subordinated secured seller note payable over five years, and 550,000 SMGI shares valued at $233,750.SMGI currently anticipates $2.4 million in revenue over the next twelve months with approximately $630,000 in EBITDA, from Momentum’s existing customers.SMGI acquired approximately $1.1 million in equipment at closing.SMGI management team has experience purchasing water transfer companies and growing them into Frac Water Management businesses.Momentum adds several new key customers that should accelerate the scale up of SMG’s existing South Texas operations in the Eagle Ford Shale. Mr. Matt Flemming, CEO of SMG, stated, \"Acquiring Momentum’s frac water transfer business represents a new platform of growth for SMG in the Frac Water Management market segment. While our existing divisions, SMG oil tools and MG Cleaners, give us exposure to the drilling market segment, through Momentum, SMG now participates in the completions and fracing side of the business. Momentum’s geographic focus in the Eagle Ford Shale in South Texas is attractive in our view given customers’ close proximity to the market and gulf coast refiners. We believe this acquisition is immediately accretive for our stockholders.” Mr. Flemming continued, “Currently, SMG will continue to pursue other accretive acquisitions. However, there can be no assurances that the Company will successfully execute any other acquisition, and if acquired, no assurances that it will succeed.” Mr. Stephen Christian, EVP of Operations at SMG, stated, “Momentum has an excellent asset profile including no-leak...