Three of the largest trucking companies serving the Texas oil fields have reached a merger agreement to combine forces and create one of the largest hydraulic fracturing support companies in North America. As part of the series of talks about mergers and acquisitions that culminated in this agreement, the three companies agreed to merge under a new name: The new company will be called 1845 Oil Field Services.
The three companies concerned in the merger are D&T Trucking of Weatherford, Rowdy Farms of Southlake and Gila Hotshot of Odessa. These three companies plan to offer a comprehensive suite of logistics and freight management for oil field companies. 1845 Oil Field Services will be based in Weatherford and will feature 24/7 live dispatch and technology to allow tracking and reporting.
The merger will allow the company to offer customers a fleet of almost 500 power units and to span the shale plays of Woodford Shale, the Permian Basin, Barnett, Haynesville and Eagleford. The CEO of D&T Trucking will assume the role of CEO for the new company while the founder of Rowdy Farms will take over the job of vice president of sales. The merger was funded by AVC Partners.
Mergers can offer more opportunities for employees and investors as well as restructure a company to operate more efficiently. A business and commercial law attorney may be able to help companies navigate this complex process and arrive at an agreement that will allow them to take advantage of the benefits of a merger agreement. Companies should always seek legal advice before entering into any agreements.
Source: Trucking Info, "Three Texas Oilfield Trucking Fleets Merge", April 04, 2014