LAFAYETTE, La.--(Business Wire)--
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.
RedHawk Energy Corporation is focused on investments in and the consolidation,
through acquisition, of domestic oil and gas equipment manufacturing, leasing
and service companies. RedHawk`s common stock is registered with the Securities
and Exchange Commission but the Company does not expect to list and commence
trading its common stock until mid-2010.This press release contains certain
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 which involve known and unknown risks,
uncertainties and other factors. The accuracy of the forward-looking statements
depends on assumptions about events that change over time and may be susceptible
to periodic change based on actual experience and new developments. Actual
events, circumstances, effects and results may differ materially from the
results, performance or achievements expressed or implied by the forward-looking
statements. Consequently, the forward-looking statements contained herein should
not be regarded as representations by RedHawk or any other person that the
projected outcomes can or will be achieved. RedHawk cautions readers that it
assumes no obligation to update the forward-looking statements in this press
release.
For RedHawk Energy Corporation
Media Contact:
Julie Calzone, 337-235-2924 ext. 18
jcalzone@calzone.com
or
Company Contact:
Darcy Klug, 337-269-5933
darcy.klug@redhawkenergycorp.com
Copyright Business Wire 2009
