Purchased the oilfield frac water transfer service company located in the Eagle Ford.
HII Technologies Inc. (OTC: HIIT) has acquired Aqua Handling of Texas LLC, an oilfield frac water transfer service company for $1.3 million, the company announced Nov. 13.
The purchase price consisted of $300,000 in cash, $500,000 in notes and some 1.4 million shares of the company's common stock.
Operating under the name AquaTex, the newly acquired company is located in the Eagle Ford shale area of South Texas. AquaTex is engaged in the business of high volume water transfer services through above-ground mobile piping solutions with environmentally safe, no-leak systems designed to support the millions of gallons typically needed for hydraulic fracturing in hydrocarbon reservoirs.
AquaTex's co-founder, Chris George, entered into a three year employment agreement in connection with the acquisition serving as general manager and vice president. George has extensive experience in the treatment, handling and logistics of frac water management. Previously, he served as Stallion Oilfield Services' waterline operations manager for their Texas water transfer division.
AquaTex has contracts with nationally recognized E&P companies in the Eagle Ford shale and South Texas areas, which will augment the company's existing customer base and is expected to result in additional revenues. For the nine months ended Sept. 30, 2013, AquaTex's preliminary unaudited revenues and net income were $1.6 million and $18,000, respectively, which included start-up costs. For the month of September, AquaTex's preliminary unaudited revenues and net income were $238,000 and $80,000, respectively.
"HII Technologies is pleased to bring on board AquaTex and Chris George's significant management expertise for our water transfer business," Matt Flemming, HII Technologies' CEO, said in the release. "We anticipate an increase in South Texas market share from this immediately accretive acquisition and anticipate growth through our customer cross-fertilization program now underway."
"AquaTex is an excellent acquisition for our existing water transfer business and will fit nicely with AES expanding our market share in the South Texas area. AquaTex has a good customer base some of which is strategic to our company," Brent Mulliniks, AES Water Solutions president, said in the release.
"AquaTex is excited to join with HII Technologies, and AES Water Solutions to be a part of the water group of the company and to grow the water transfer and frac water treatment business" Chris George, AquaTex general manager and vice president, said in the release. "With the assistance of HII Technologies and AES Water Solutions, we look forward to expanding our water management and treatment services in South Texas and benefiting from any future oilfield technologies the company may commercialize."
The acquisition requires an audit of AquaTex financial statements for the period January through Sept. 30, 2013 which will be reported in an amendment to our current report on Form 8-K by Jan. 25, 2014. The company anticipates filing its quarterly report on Form 10-Q by Nov. 14, 2013 which will not include results from AquaTex.
HII Technologies Inc. is a Houston-based oilfield services company with operations in Texas, Oklahoma, Ohio and West Virginia.