The Registrant has entered into a material acquis
Post# of 171
The Registrant has entered into a material acquisition agreement;
Acquisition of Chico Coffman Tank Trucks, Inc.
On January 15, 2013 Registrant by and through wholly owned subsidiaries, Frontier L&R Tank Trucks, LLC and Frontier L&R Disposal Wells, LLC., executed an Asset Purchase Agreement whereby, upon closing, it will acquire substantially all of the assets and business of L&R Tank Trucks, Inc., and Stark & Stark Equipment, Inc. (“L&R”) for the sum of $10,300,000 subject to certain negative and positive adjustments based upon the amount, at the time of closing, of L&R’s indebtedness, seller’s expenses and EBITDA adjustments.
L&R is a salt water disposal company founded in 1989 with its primary base of operations located in Bowie, Texas with its trade and service area being in the Barnett Shale oil field located in north central Texas.
L&R had unaudited 2012 revenues of approximately 9.5 million with an EBITDA of approximately $3.7 million. L&R’s assets are currently valued on its unaudited financials at $10.5 million and consist of accounts receivable, rolling stock (trucks and trailers), four permitted disposal wells with an approved permit for a fifth disposal well and the headquarters real property.
The Registrant’s payment of the purchase price and closing is currently not scheduled as closing is conditioned upon certain obligations of the parties however Registrant anticipates that the closing will be within the current fiscal quarter.
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