Bulk transportation company Quality Distribution in deal to acquire Virginia-based Greensville Transport, provider of tank container, depot services with access to ports in Virginia, Maryland and South Carolina, for US$8.5M
October 10, 2011
– Quality Distribution, Inc. today announced that its wholly-owned subsidiary, Boasso America Corporation ("Boasso"), has entered into a definitive agreement to acquire 100% of the outstanding stock of Greensville Transport Company ("Greensville"). The purchase price is $8.5 million, payable in cash, and up to an additional $0.5 million in cash, subject to Greensville meeting certain future operating performance criteria.
"We are excited about the pending Greensville acquisition, which is consistent with our strategy of growing our Boasso business," said Gary Enzor, President and Chief Executive Officer of Quality Distribution, Inc. "The team at Greensville runs an excellent operation, making this acquisition a strong supplement to Boasso's East Coast service offering."
Greensville, which is headquartered in Chesapeake, VA, is a leading provider of ISO tank container and depot services with access to ports in Virginia, Maryland and South Carolina. For its most recent fiscal year ended December 31, 2010, Greensville had revenues of approximately $8.0 million. The Company expects to close the transaction in the fourth quarter, subject to customary closing terms and conditions, and expects the acquisition to be accretive to earnings and cash flow in 2012.
Scott Giroir, President of Boasso, stated: "We are excited to announce this outstanding opportunity. Greensville has an excellent reputation in the intermodal tank container industry and we are confident that the business will merge seamlessly with our core operations. The Mid-Atlantic market is an attractive region with excellent growth prospects, especially with the planned expansion of the Panama Canal in 2014."
Ted Lepski, President of Greensville, stated: "We are pleased to have this opportunity to partner with Boasso and Quality Distribution. We believe this combination will enhance our ability to provide the best possible service to our customers and give us the ability to more quickly expand our geographic coverage."
Headquartered in Tampa, Florida, Quality operates the largest chemical bulk tank truck network in North America through its wholly owned subsidiary, Quality Carriers, Inc., and is the largest North American provider of intermodal tank container and depot services through its wholly owned subsidiary, Boasso America Corporation. Quality also provides logistics services for water hauling in the gas and oil frac shale market through its wholly owned subsidiaries QC Energy Resources, Inc. and QC Energy Resources, LLC. Quality's network of independent affiliates and independent owner-operators provides nationwide bulk transportation and related services. Quality is an American Chemistry Council Responsible Care(R) Partner and is a core carrier for many of the Fortune 500 companies that are engaged in chemical production and processing.
Quality Distribution, Inc.'s common stock trades on the NASDAQ Global Market (GM) under the symbol "QLTY." For further information about Quality, visit the company's website at www.qualitydistribution.com