Business
SMGI Announces Successful Recapitalization and Acquisition of Barnhart Transportation, a Leading Logistics Services Provider Based in Pennsylvania
SMGI Announces Successful Recapitalization and Acquisition of Barnhart Transportation, a Leading Logistics Services Provider Based in Pennsylvania.
About this update from Smg Industries, Inc.
[{"type":"text","content":"\n HOUSTON, Texas, July 10, 2023 (GLOBE NEWSWIRE) -- via NewMediaWire -- SMG Industries Inc. (“SMGI” or the “Company”) (OTCQB: SMGI), a growth-oriented transportation services company focused on the domestic infrastructure logistics market, is pleased to announce the successful acquisition and merger of the Barnhart Transportation group of companies (“Barnhart”), a 20 year-old established logistics service provider based in Pennsylvania. The successful closing of this strategic acquisition not only approximately doubles SMGI's annual revenue and increase its adjusted EBITDA, but also brings operational and revenue diversification, strengthens the Company's balance sheet and adds exceptional expertise to its leadership team. The total acquisition consists of Barnhart Transportation, LLC, Barnhart Fleet Maintenance, LLC, Lake Shore Logistics, LLC, Lake Shore Global Solutions, LLC, Legend Equipment Leasing, LLC and Route 20 Tank Wash, LLC, which specializes in a wide range of transportation services, including full truck load, dry bulk, liquids, intermodal, LTL, heavy haul, drayage, transload, and an \"asset lite\" brokerage business. The consummation of this acquisition significantly contributes to SMGI’s revenue diversification and expansion efforts, as well as creates valuable cross-selling opportunities. Based on audited pro forma 2022 combined revenues of $153 million and pro forma 2022 estimated adjusted EBITDA of $18.2 million (including $2.5 million in estimated cost saving synergies), this acquisition positions SMGI as a leading regional transportation and logistics player across multiple markets in the United States. With the completion of this transaction, SMGI’s balance sheet is significantly improved, including a large increase in the book value of the combined company. Additionally, overall leverage defined as debt as a multiple of adjusted EBITDA is reduced significantly, debt service costs have been reduced significantly, resulting in enhanced equity value, and accelerating our plans to list our common stock on a national securities exchange. Commenting on the acquisition, Mr. Matt Flemming, Chairman of SMGI, expressed his enthusiasm, stating, \"The acquisition of Barnhart by SMGI creates an attractive and diversified platform. We anticipate that the combined entity wi...