Water Energy Services (WES) Announces the Acquisition of the FMS Business from Key Energy Services Positions for Growth
SAN ANTONIO--(BUSINESS WIRE)--Water Energy Services ("WES") announces the acquisition of the FMS Business from Key Energy Services. WES provides water logistic services, fluid containment, oil reclamation, salt water disposal and water recycling in the Eagle Ford Shale and the Permian Basin. The FMS Business includes 32 SWDs, frack tanks, transport vehicles and other equipment located in Texas and New Mexico. The CEO of WES, Nicholas Atkins explained that "With the acquisition of the FMS Business we add significant new assets, customer relationships and seasoned personnel to our workforce and the acquisition gives us a broadly diversified base for providing services to our existing and new customers. With the addition of the FMS Business WES is positioned to proceed with several other OFS businesses we are planning to acquire in the Permian and other locations which will be complementary to our business.”
Key's President and Chief Executive Officer, Marshall Dodson stated, "With the divestiture of our Permian Basin and Gulf Coast FMS line of business, we are well-positioned to focus on our core businesses of well service rigs, fishing and rental and coiled tubing operations in those markets. We will use the sales proceeds to strengthen our financial position and to reinvest in our business as we take advantage of the opportunities in front of us.”
A lifelong entrepreneur, Mr. Atkins has founded, developed and successfully exited numerous businesses in the oil and gas industry while creating shareholder value. He has been committed to cleaning up wastewater and drilling fluids in environmentally friendly ways with minimal impact on the environment. Under his leadership, WES has experienced significant growth and transformation both organically and through the strategic acquisition of oilfield services and green technologies.
WES’ CFO Jamie Downs, COO Grady White and HR Director Stephanie Barr were instrumental in getting the deal done with their vast experience in the oil patch.
Rudy Concha, Mr. Atkins' partner in WES, is the founder and chairman of Security Real Estate Brokerage, a private investment firm focused on building real estate-related businesses in primary markets such as the greater Los Angeles Area. Mr. Concha has built his real estate portfolio valued at over $100,000,000 in land, apartments, industrial buildings, commercial and residential properties with skill and tenacity.
Greg Pierce, Managing Director of Oak Hills Securities, Inc. acted as financial advisor and investment banker to WES, Maynards Capital provided the equipment financing for this transaction and Amerisource Business Capital financed the real estate and working capital portions of the transaction.
WES was represented by Leib Orlanski, K&L Gates LLP, Los Angeles, Key Energy Services was represented by Gibson, Dunn & Crutcher LLP and Womble Bond Dickinson (US) LLP represented Maynards Capital.
