US-based flatbed and specialised transportation consolidator Daseke has acquired oil rig moving company Aveda Transportation and Energy Services.
Daseke acquired Aveda for $0.7 a share, or around $42.6m and the payoff of $54.8m in debt.
Under the terms of the transaction, Daseke offered $27.3m in cash and more than 1.6 million shares, worth $15.3m in exchange for the acquisition.
Aveda provides specialised transportation services and equipment required for the exploration, development and production of petroleum resources in the US and the Western Canadian Sedimentary Basin, with a focus on the specialised hauling of large oil rigs and worksite equipment.
Daseke chairman and CEO Don Daseke said: “Beyond the strategic rationale, this transaction also presents numerous synergies not contemplated in the purchase price.
“Aveda outsources up to 35% of its long-distance rig movers to other carriers, and we have the equipment to capture some of this revenue through our various operating companies.
“In addition to cross-selling, we have also identified other benefits of scale in the way of purchasing, fuel and insurance.”
Aveda’s existing terminal locations have a share of nearly 80% of the potential North American market.
Around 90% of the company’s revenue comes from all seven of the major US oil basins.
Incorporated in 1994, the company owns 1,300 pieces of equipment.
Based on a November 2017 outside equipment appraisal, the machinery and equipment are valued at $90m.
Last year, Aveda’s revenues increased from $57.2m to $155.7m in 2016.
