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TAMPA — Quality Distribution Inc. announced Monday that, through subsidiaries, it has purchased the operating assets of Dunn's Tank Service Inc. and the operating assets and rights of Nassau Disposal Inc. for $34.3 million in cash.
According to a release, Quality may pay an additional $3.6 million in cash for the companies if future operating and financial performance criteria are met.
The acquisitions will help Quality expand its transportation and logistics services to unconventional oil and gas industry operations, such as hydraulic fracturing, in Oklahoma and Ohio.
Dunn's, based in Velma, Okla., provides transportation services to energy companies, primarily hauling flowback and production water from oil and gas operations. Nassau then disposes of this waste with its two existing salt water disposal wells. Dunn's and Nassau, both run by President Todd Dunn, had combined revenues of about $17.5 million for 2011.
“The acquisition of Dunn's and Nassau represents another important step in expanding and diversifying our energy logistics business,” Quality CEO Gary Enzor says in a release. “The Woodford and Utica shales are growing and Dunn's is well positioned to capitalize on these oil-rich areas.”
Tampa-based Quality Distribution is publicly traded, (symbol: QLTY; recent price: $10.25).
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