Adds Complementary, High Growth Frac Water Transfer Business With Expected Accretive Margins; Pro Forma 2014 Revenue and Adjusted EBITDA Projected to Be $50 to $53 Million and $8 to 10 Million, Respectively
HII Technologies, Inc. (HIIT), an oilfield services company headquartered in Houston, Texas, today announced the acquisition of Hamilton Investment Group ("Hamilton") for $11.3 million in cash and stock. The Company expects the acquisition to be immediately accretive to the Company's full year 2014 earnings. The acquisition closed on August 12, 2014.
Founded in 1993 in Guthrie, Oklahoma, Hamilton provides frac water transfer services to oilfield operators located in Oklahoma and North Texas. Today, Hamilton has an inventory of approximately 50 miles of aluminum pipe and lay flat hose, as well as pumps and other related equipment, which they deploy in a services rental business model similar to AquaTex and AES Water Solutions, HII's water services subsidiaries. Oilfield operators contract with Hamilton to transport the necessary 5 to 10 million gallons of water needed for a single hydraulic fracturing completion or 'frac' of a well.
Hamilton's audited 2013 revenues and EBITDA (a non-GAAP measure) were approximately $12 million and $4.5 million respectively, up from approximately $8.5 million and $2.4 million, respectively, in 2012. Hamilton charges by the foot and by the day for the use of its hose and a day rate for the related pumps, manifolds, road crossings, and other equipment and has a broad customer base with established multi-project oilfield operators in the Oklahoma and North Texas regions.