SMG Industries (OTC:SMGI) noticed its stock popping on a day when most issues were fleeing for cover.
The Houston-based SMG, a growth-oriented midstream and oilfield services company operating in the Southwest United States, announced today the acquisition of 100% of 5J Oilfield Services and 5J Trucking. Price tag for both purchases was $27.3 million.
5J boasts a fleet of approximately 100 trucks, 240 trailers, 18 cranes and 25 forklifts utilized to move large compressors and production equipment for midstream, pipeline and oilfield companies, as well as drilling rig mobilization for operators and drilling contractors.
5J's assets were recently appraised at $24 million, in connection with the acquisition, based on an orderly liquidation value basis. 5J currently has five facilities to service its broad base of customers throughout Texas, Louisiana and New Mexico.
Currently, SMG projects 2020 consolidated revenues, inclusive of 5J, of approximately $60 to 64 million and an estimated adjusted EBITDA range of approximately $7 to $8 million.
Shares of SMGI took on 1.2 cents, or 7.2%, to 18 cents, on volume of 86,000 shares.
