The deal would help SMG industries through various perspectives to grow.
SMG Industries, Inc., an oilfield services company operating in the Southwest United States, has announced to acquire the Momentum Water Transfer Services, LLC., which specializes in high volume, high rate water transfer services through mobile piping systems.
SMGI has acquired 100% of the membership interests for a total purchase price of $1,395,750. Through this deal, Momentum adds several new key customers that should accelerate the scale-up of SMG’s existing South Texas operations in the Eagle Ford Shale.
The deal to gain new customers
Matt Flemming, CEO, SMG, said, “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.”
Moreover, Matt also informed that currently, SMG would continue to pursue other accretive acquisitions. However, there can be no assurances that it will successfully execute any other acquisition, and if acquired, no assurances that it will succeed.
The acquisition to help SMG grow in different geographical areas
Stephen Christian, EVP of Operations, SMG, stated, “Momentum has an excellent asset profile including no-leak high volume frac hose used as above ground temporary infrastructure to deliver water from a source to the frac site location. We believe we can further drive utilization offering this equipment and service to our legacy customers. The Momentum management team has previous big company training and will remain post-acquisition to help us grow this business. Strategically, their South Texas presence helps our existing operations and growth prospects.”
About SMG Industries, Inc.
Headquartered in Houston, Texas, SMGI has facilities in Carthage, Odessa and Alice, Texas. The company offers an expanding suite of products and services through its wholly-owned operating subsidiaries.