Aveda Transportation, the Canadian oilfield transport and equipment rental firm, closed a $42 million acquisition deal with Seventy Seven Energy, Inc. today to purchase Hodges Trucking Company out of Oklahoma City, Oklahoma.
Much of Aveda’s U.S. business centers around the oil and gas industry in Oklahoma and Texas, making acquisition of Hodges from previous owner Seventy Seven Energy a shrewd move to better serve that region.
Aveda provides energy industry sites with the specialized transportation services necessary to safely move oil and gas production hardware around sites in both Canada and the United States.
The company also rents oilfield equipment such as well-sites, tanks, mats, pickers and light towers – all of which must be hauled to various work sites.
Hodges Trucking has more than 300 employees and owns nearly 1,000 pieces of rig moving and heavy haul equipment, including a fleet of approximately 200 haul trucks, 400 trailers, 70 bed/pole trucks, 35 cranes, 40 forklifts/loaders and 160 service vehicles.
The deal will create North America’s largest rig moving company in terms of combined revenue.
The purchase was partially financed through Aveda’s creditor, with another $27 million financed through a seller take-back note. The note must be repaid in five years or control of Hodges Trucking will revert to Seventy Seven Energy, Inc.
