Merger Creates Leading Proppant Logistics Company
WEATHERFORD, Texas–(BUSINESS WIRE)– April 3, 2014
D&T Trucking, Rowdy Farms and Gila Hotshot today announced a definitive merger agreement forming one of the largest proppant logistics companies in North America. The merged company, 1845 Oil Field Services, will offer customers a suite of oil field logistics and one-call freight management capabilities.
The merger gives 1845’s customers access to a fleet of nearly 500 dedicated power units and a footprint that spans many of the major shale plays, including the Barnett, Eagleford, Haynesville, Woodford Shale and Permian Basin. Hallmarks of the new company include a state-of-the-art 24/7 live dispatch operation center and industry-leading logistics technology for tracking and reporting deliveries. The merger also creates more national opportunities for drivers, owner-operators, brokers and partners. Tim Buffington, CEO of D&T Trucking, will assume the role of CEO for 1845 Oil Field Services.
“D&T is excited to join forces with Rowdy Farms and Gila Hotshot to offer a one-call proppant freight management solution,” said Buffington. “Our field coordinators and logistics professionals seamlessly integrate with our customers’ supply chain management and make oil field transportation services more efficient and cost-effective for our customers.”
Rowdy Farms Founder Craig Gandy becomes 1845’s executive vice president of sales. “1845 creates an opportunity to rapidly grow our strong independent contractor network and offer our owner operators additional services and benefits including access to a broader customer base, larger area of operation, 24/7 live dispatch, expanded regional growth opportunities, discounted fuel and attractive group insurance rates,” said Gandy. “Above all, 1845 offers our stakeholders greater financial stability.”
The strategic formation of 1845 was enabled with the financial backing of AVC Partners, a middle market private equity group focused on growing logistics and transportation businesses founded by Marc Kramer and Chris Munro. “We see a tremendous opportunity for an innovative capacity manager like 1845 in proppant logistics,” AVC Partners said in its merger statement. “1845’s scale and strong independent contractor network provides many benefits for our customers. Better utilization of existing equipment will increase the effective capacity available to customers and improve operating efficiencies. Application of real-time logistics technology and improved equipment utilization will lead to better service quality, less down time and ultimately lower service costs for the customer.”
1845 Oil Field Services, based in Weatherford, TX, provides one-call transportation, logistics and supply chain management solutions to North American oil field operators. It manages one of the largest equipment fleets dedicated to proppant transportation supported by a modern 24/7 live dispatch operation center and industry-leading logistics technology for tracking and reporting deliveries to multiple well locations.
About D&T Trucking
Established in 2007, D&T Trucking supplies transportation services to major oil and gas shales in the United States through company equipment, owner operators and third party carriers. D&T is headquartered in Weatherford, TX and is a recognized leader in the industry.
About Rowdy Farms
Headquartered in Southlake, TX, Rowdy has a track record of success in the proppant transportation industry, primarily operating in the Eagleford Shale in South Texas. Rowdy operates through a strong network of independent contractors.
About Gila Hotshot
Gila Hotshot has been supplying proppant trucking services to the oil field industry since 2006. Based in Odessa, TX, Gila primarily serves the Permian Basin of West Texas.
About AVC Partners
AVC Partners is a private equity firm focused on growing middle market logistics and transportation businesses. AVC creates value by providing financing combined with proven, pragmatic and active management strategies for scaling businesses.