Houston-based SMG Industries Inc. (SMGI) has acquired the Barnhart Transportation group, a 20-year-old trucking company and logistics brokerage with 167 drivers and 170 trucks.
Officials for SMGI said the acquisition doubles the company’s annual revenue and creates operational and revenue diversification.
“The acquisition of Barnhart creates an attractive and diversified platform,” Matt Flemming, SMGI chairman, said in a news release. “We anticipate that the combined entity will establish itself as a larger, scalable, and more diversified transportation business, emerging as a regional leader in Texas, the Southwest and the Eastern seaboard.”
SMG Industries’ acquisition consists of all of Barnhart’s business entities, including Barnhart Transportation, Barnhart Fleet Maintenance, Lake Shore Logistics, Lake Shore Global Solutions, Legend Equipment Leasing and Route 20 Tank Wash.
The transaction totals $53.25 million, including $26 million in cash. As part of the acquisition, the principal owners of Barnhart Transportation received $19.25 million of the purchase price in the form of SMGI common stock, as well as $5 million of SMGI preferred stock and a $3 million promissory note from SMGI.
Barnhart Transportation, which is based in Harborcreek, Pennsylvania, was founded in 2003 by brothers Bryan and Tim Barnhart. The company began as a domestic flatbed hauler with two trucks.
Today, Barnhart Transportation transports everything from dry bulk to nonhazardous liquids, and offers heavy-haul solutions as well as brokerage services.
Bryan Barnhart was appointed CEO of the newly merged company as part of the acquisition, while Tim Barnhart will become SMGI’s chief financial officer. Both will also become SMGI board members.
“Anticipating market trends and making strategic investments have been key to staying ahead in the dynamic global logistics market,” Tim Barnhart said in a statement. “Within the combined entity, we see tremendous opportunities for growth and success.”
SMG Industries (OTCQB: SMGI) owns 5J Transportation Group, which offers specialized heavy haul, super heavy haul, flatbed, brokerage and drilling rig mobilization services. 5J has 240 trucks and 127 power units.
SMGI has seven facilities across Texas, and one in Fort Mill, South Carolina.
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