CALGARY, AB-Oilfield transporter Aveda Transportation and Energy Services Inc. is purchasing Oklahoma City, OK.-based Hodges Trucking Company, a wholly-owned subsidiary of Seventy Seven Energy Inc. (“SSE”). With the purchase, the Canadian-based Aveda becomes the largest rig-moving company on the continent.
Hodges currently owns approximately 900 pieces of rig-moving and heavy-haul equipment, including approximately 200 haul trucks, 400 trailers, 70 bed/pole trucks, 35 cranes, 40 forklifts/loaders and 160 service vehicles.
Aveda, incorporated as a private company in 1994 only to go public in 2006, has operations in Calgary, Leduc, AB, Edson, AB, Mineral Wells, TX, Pleasanton, TX, Midland, TX, Williamsport, PA, Buckhannon, WV, Williston, ND, and Cherokee, OK.
Aveda is publicly traded on the TSX Venture Exchange under the symbol AVE.
Hodges has been in operation since 1933 and has a footprint similar to Aveda’s U.S. operations with terminals in Oklahoma, Texas, and Ohio. Hodges currently has over 300 employees.
Hodges’ gross revenue peaked at approximately US$166.0 million in 2012, dropping to US$139.4 million in 2013 and $123.7 million in 2014. EBITDA was US$34.0 million in 2012, US$13.6 million in 2013 and US$14.1 million in 2014.
On a combined basis, Hodges’ and Aveda’s 2014 gross revenue makes the new company the largest rig-moving company in North America (by gross revenue).
Due to reduced drilling activity levels and energy market conditions, similar to many other oilfield services companies, Hodges generated reduced revenue and a net loss in the first quarter of 2015.
According to a statement from the company, Aveda is currently exploring all options for integration and consolidation to maximize future synergies between the two operating entities.
The transaction is expected to close on June 15, 2015. The transaction is subject to a number of standard conditions precedent to closing.