Streicher Mobile Fueling Acquires Houston-Based Shank Services
FT. LAUDERDALE, FL — Streicher Mobile Fueling, Inc., an outsourced refueling and fuel management solution provider for vehicle and equipment fleets, announced on February 28 that it has completed the acquisition of Houston-based Shank Services.
Shank Services is a provider of commercial fueling and heavy haul transportation services with operations in Houston, Dallas/Forth Worth, Austin and San Antonio, Texas. It was acquired from Shank C&E Investments for a net purchase price of $7.7 million. The transaction closed on February 18, 2005.
In accordance with the January 25, 2005 agreement between the company and its wholly owned subsidiary, SMF Services, Inc. ("SSI"), and Shank C&E Investments, L.L.C., and its members, SSI acquired substantially all of the assets and related business of Shank Investments, operating under the trade name "Shank Services." SSI paid $5.2 million for the vehicles, trailers, tanks, other operating equipment, business interests and related intangibles of the Shank Services business, of which $3.3 million was paid in cash and $1.9 million in a two year deferred payment promissory note. Payment of the promissory note is subject to certain financial performance contingencies of the combined Texas operations of the Company and the former Shank Investments operations during an 18-month period ending December 31, 2005.
SSI also purchased accounts receivable and inventory from Shank Investments for approximately $3.0 million in cash. After adjustments, the total consideration for the acquisition was $7.7 million. SSI did not assume any material liabilities or debt of Shank Investments.
As previously announced, the company financed the Shank Services acquisition, other than the accounts receivable and inventory, with a portion of the proceeds of its recent $6.1 million private placement of senior secured notes and common stock warrants.