TETRA Technologies Expands Production Testing Business Unit
TETRA Technologies has acquired Beacon Resources, L.L.C., an onshore production testing company with headquarters in Denton, Texas, and service centers in Benbrook and Odessa, Texas, and Hobbs, New Mexico. The purchase price was $15 million in cash plus a potential earn-out payment, contingent on target profitability over the next three years.
Geoffrey M. Hertel, President and Chief Executive Officer, stated, "This acquisition significantly alters our domestic footprint for this business line. Beacon allows us to expand into the Fort Worth and Permian Basins, and also gives us a platform for growth into the mid-continent. Beacon has a well developed customer base and a fleet of new and well maintained testing equipment - a substantial portion of which is specifically suited for high pressure, high temperature wells, including specialized hydraulic choke equipment.
"Beacon has a high quality reputation and comes to us with an
experienced management team. This management should allow us to
leverage off the synergies created by the TETRA/Beacon combination.
Beacon's current revenue run rate is between $15 - $20 million. The
purchase should be immediately accretive to TETRA's earnings. We hope
to enhance these profits as we begin to integrate Beacon into the
family of TETRA companies," concluded Hertel.
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