Shumate Industries to Acquire Sunbelt Machine Works
Shumate Industries, a technology-oriented energy field services company, has entered into definitive agreements to acquire Sunbelt Machine Works located in Stafford, Texas, just south of Houston. The closing of the acquisition is subject to several conditions including final due diligence, board approval and financing.
Sunbelt Machine Works has a 29-year history in machining and manufacturing for large energy customers that complement Shumate Machine Works' customer base. Sunbelt has more than 80 CNC and related machines used to manufacture down-hole production products, logging and measuring tools, and valves for Fortune 500 energy customers. The terms of the pending transaction include an aggregate purchase price of $14.5 million (including the assumption of approximately $500K in Sunbelt debt), payable in cash, a seller note, and Shumate common stock.
Larry Shumate, Chairman and CEO of Shumate Industries, stated, "Sunbelt is a very solid company with an excellent reputation in the marketplace which they have earned over the last 29 years. Having a strategic manufacturing resource with excess manufacturing capacity to make our Hemiwedge® down-hole isolation valve (DIV) is key in today's tight supply-chain operating environment." Mr. Shumate also added, "In addition to being immediately accretive, this acquisition is strategic to our Company bringing additional customers, and saves time and money allowing us to avoid slowly developing an outside supply chain for a new product like the DIV."
Frank Scantlin, Chairman of Sunbelt Machine Works, stated, "Sunbelt has a bright future in its own right as one of the largest independent machining and manufacturing companies in the Southwest U.S., however, the addition of a proprietary down-hole valve like the Hemiwedge® DIV gives our company another product that gives us higher control and increasing visibility for our future growth."
Sunbelt operates in two adjacent buildings totaling approximately 55,000 square feet of space. The acquisition is expected to close within the next 45 days.
Shumate Industries, Inc. is a Texas-based energy field services company that incorporates new technologies to bring products to market leveraging its existing infrastructure, expertise and customer channels. The Company operates through two wholly owned subsidiaries, 1.) Shumate Machine Works, a contract machining and manufacturing division, and 2.) Hemiwedge Valve Corporation, a proprietary new valve technology that targets mid-stream process and flow control markets with its Hemiwedge® Cartridge valve product line, sub-sea via a pending licensing deal for Hemiwedge® sub-sea high pressure valve product line, and Hemiwedge® down-hole isolation valves under development for managed pressure drilling applications
- Shumate Certified, Licensed For Hemiwedge Cartridge Valve (Apr 08)
- Shumate Releases Additional Hemiwedge Cartridge Valve Sizes (Jan 07)
- Valve Industry Veteran, Stan Allen, Joins Hemiwedge Valve Corporation Team (Aug 28)
Company: Sunbelt Machine Works more info
- Shumate Industries to Acquire Sunbelt Machine Works (Aug 20)