Nov 3, 2009 1:38 PM by sleonard
LAFAYETTE, LOUISIANA - NOVEMBER 3, 2009 - RedHawk Energy Corporation ("RedHawk") announced today that it has acquired 100% of the membership interests of Texas-based Xxtreme Pipe Services, LLC, Xxtreme Pipe Storage, LLC, Xxtreme Tubular Processors, LLC and Wolf Pack Rentals, L.L.C. (collectively, the "Xxtreme Group") for $66.0 million in cash, preferred stock and assumed debt. The purchase price is subject to certain post-closing adjustments.
Headquartered in Houston, Texas, the Xxtreme Group is a premier provider of oilfield services including ultrasonic inspection, storage and API threading and processing of Oil Country tubular goods. Through its tubular unit, the Xxtreme Group employs approximately 150 operational, marketing and administrative personnel with field and administrative facilities in Houston, Channelview and Lone Star, Texas and Beebe, Arkansas. Through its rental unit, Wolf Pack Rentals, L.L.C., the Xxtreme Group, employs approximately 30 field, marketing and administrative personnel in Texas, Oklahoma, Arkansas and West Virginia. Wolf Pack Rentals, L.L.C.'s rental fleet includes modular buildings, living quarters, generators, light towers, water and sewer systems, forklifts, man-lifts, communication systems and drill pipe.
For the twelve month period ended December 31, 2008, the Xxtreme Group reported net income of approximately $11.1 million on revenue of approximately $36.4 million. For the nine month period ended September 30, 2009, the Xxtreme Group reported net income of approximately $[4.2] million on revenue of approximately $[20.5] million as compared to net income of approximately $7.3 million on revenues of approximately $25.0 for the nine month period ended September 30, 2008. For the twelve month period ended September 30, 2009, net income for the Xxtreme Group approximated $8.0 million on revenue of approximately $31.9 million.
Commenting on the acquisition, G. Darcy Klug, founder of RedHawk, said, "This acquisition is a tremendous milestone for our company. We believe market conditions are favorable for selective, strategic energy sector acquisitions of businesses with strong management teams and a good track record through these difficult and challenging periods. We are positioning RedHawk with a solid financial and operational foundation to capitalize upon various strategic growth opportunities as they arise if market conditions stabilize over the next twelve to twenty-four months."
Additionally, RedHawk previously announced the addition of Thomas J. Concannon as its Senior Vice President. Mr. Concannon has more than 20 years of energy industry experience. He recently served as Vice President and Chief Financial Officer of Geokinetics Inc., a publicly traded provider of seismic acquisition and data processing services to the oil and natural gas industry. Mr. Concannon earned an accounting degree from Manhattan College. Prior to receiving his Juris Doctorate from St. John's University School of Law, he was a member of the audit staff of PricewaterhouseCoopers.