Aly Energy Services, Inc. Announces Acquisition of United Centrifuge USA, LLC
April 16 2014 - 9:29AM
Marketwired
Aly Energy Services, Inc. Announces Acquisition of United
Centrifuge USA, LLC
HOUSTON, TX--(Marketwired - Apr 16, 2014) - Aly Energy Services,
Inc. (OTCQB: ALYE) today announced that on April 15, 2014, it
acquired substantially all of the assets used in the operations of
United Centrifuge USA, LLC, including but not limited to 46
centrifuges as well, shakers and vehicles, and all of the
outstanding membership interests in United Centrifuge USA, LLC, in
a deal totaling $25MM.
From Munawar "Micki" Hidayatallah, Chairman and CEO of Aly
Energy Services, Inc.: "This acquisition brings an exciting new
dimension to Aly Energy's fluid management, solids control, and
surface rental equipment operations. Not only are we acquiring
United's leading edge equipment and technology, but we are also
adding United's highly qualified management team, led by Myles
Bowman. United Centrifuge USA, LLC represents an exceptionally
complementary acquisition for Aly Energy Services, Inc.; acquiring
United further diversifies Aly's customer base, expands our
geographic footprint into new basins, and adds new products and
services to our current offerings. The quality of United's
equipment, technology, and service offerings has enabled their
management team to grow United from a startup operation in February
2012 to revenues of nearly $12MM in FY 2013. Aly will continue to
advance our combined entity through increased capital expenditures,
geographic expansion, and further strategic acquisitions."
In a joint announcement, Myles Bowman, GM/VP of United
Centrifuge USA, LLC added, "We're excited to announce that becoming
an Aly company places us in an even stronger position to continue
providing our customers with the same quality service they've come
to expect from us as United, even as we maintain our traditional
core values of Honesty, Integrity, and Hard Work."
The purchase price will be funded by both debt and equity. Aly
Energy Services, Inc. has amended its loan agreement with Wells
Fargo Bank, N.A., increasing its term debt to $25MM and its
revolving line of credit to $5MM. The proceeds of the term debt
will pay down the existing debt of approximately $9.7MM, leaving
some $15MM as partial consideration for all of the operating assets
and membership interests of United Centrifuge USA, LLC. Any surplus
proceeds from the term debt will go towards working capital and
general corporate purposes.
Aly Energy Services, Inc. also completed a private placement of
12,419,108 shares at $0.55 per share. While this private placement
will close on April 30, 2014, as of today's announcement, Aly is in
receipt of cash proceeds totaling $5,680,510 and expects to receive
an additional $1.15MM prior to the closing date. The equity
contribution will be used to fund capital expenditures, working
capital, and acquisitions.
The Board of Directors of Aly Energy Services, Inc. has approved
a name change of the acquired entity from United Centrifuge USA,
LLC to Aly Centrifuge Inc.
About Aly Energy Services, Inc.
ALYE, through its subsidiaries Aly Operating, Inc. and Austin
Chalk Petroleum Services Corp., provides surface rental equipment
and roustabout services responsible for delivering equipment and
rig-up on well sites. ALYE has operating yards in Giddings, Texas
(headquarters), San Angelo, Texas, and Dilley, Texas, from which
ALYE services the Eagle Ford shale, and the Permian Basin, as well
as other strategic Texas fields. ALYE's primary products include
mud circulating tanks (400 and 500 barrel capacity), mud pumps
(diesel and electric), oil skimming systems, secondary containment
systems and stairs, mud mixing plants, and 3" polyethylene pipe.
ALYE fabricates several of its products in-house.
Forward-looking statements The following constitutes a "Safe
Harbor" statement under the Private Securities Litigation Reform
Act of 1995. Except for the historical information contained
herein, the matters discussed in this press release are
forward-looking statements that involve risks and uncertainties,
which could cause our actual results to differ materially from
those described in the forward-looking statements. These risks
include the risks detailed from time to time in the SEC reports of
Aly Energy Services, Inc. Aly Energy Services, Inc. undertakes
no obligation to update forward-looking statements.
Alya Hidayatallah CFO 713-333-4000
Aly Energy Services (GM) (USOTC:ALYE)
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