Seventy Seven Energy Inc. (SSE) said June 15 it completed the sale of Hodges Trucking Co. LLC to a subsidiary of Aveda Transportation and Energy Services Inc., based in Calgary, Alberta, for $42 million.
Hodges currently operates and owns about 900 pieces of rig moving and heavy haul equipment, including about 200 haul trucks, 400 trailers, 70 bed/pole trucks, 35 cranes, 40 forklifts/loaders and 160 service vehicles.
"This transaction allows us to grow our operational footprint in key markets, expand our blue-chip customer base and better manage pricing pressures as we continue to grow," said Kevin Roycraft, president and CEO of Aveda, in the release. "The successful completion of this acquisition is the result of a lot of hard work by the Aveda team, as we were well positioned to take advantage of this incredible opportunity brought on by current market conditions. We intend to take advantage of additional opportunities as they arise, with the intent of becoming the leading rig mover in North America."
The sale did not include the real estate used in Hodges’ operations.
At the closing, Oklahoma City's Seventy Seven received aggregate consideration of $42 million, subject to a customary post-closing working capital adjustment, consisting of $15 million in cash and a $27 million principal amount junior secured fixed rate note due June 2020. The note is secured by a second lien on substantially all of Aveda’s fixed assets and accounts receivable.
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