Stage 3 Separation LLC, a Texas-based separation and filtration services company, said on April 29 it has acquired the assets of BOS Solutions Inc., expanded geographic reach, and broadened service offerings to include environmental solutions for municipal and utility, construction and industrial projects.
The acquisition comes in a time of economic downturn for the oil and gas industry, giving the company increased financial stability and additional markets for expansion.
In the spring of 2020, when oil demand plummeted to under $0, many companies in the industry faced hard financial decisions. In May 2020, Ernst & Young Inc. was appointed as the receiver and manager of BOS Solutions in Canada. The receivership was subsequently recognized by the U.S. Bankruptcy Court under Chapter 15 Bankruptcy. The receiver commenced a sales process to sell the assets of BOS Solutions Ltd. in June 2020. Stage 3 was selected as the successful bidder and closed the purchase of BOS Solutions in September 2020.
The newly obtained assets include patented proprietary processes, equipment (currently undergoing refurbishment), including over 500 centrifuges, and millions of dollars in potential business for oil and gas and environmental services. Stage 3 welcomed more than 70 employees to the team.
Leaders at Stage 3 saw this as an opportunity to expand their geographical reach and service offerings beyond the energy sector. The benefits of the acquisition included geographical expansion as well as industry and service offering expansion.
Stage 3 Separation is headquartered in Houston, TX and historically serviced the Greater Gulf Coast in Texas, Louisiana, Oklahoma and Florida with a majority of operations in the Eagle Ford, Haynesville and Permian basins. Benefiting from newly acquired offices and equipment sites all over the United States and in parts of Canada, they can now easily deploy equipment and process specialists to jobsites all around North America. New offices and equipment yards are located in Anchorage, AK; Mandan, ND; Smithfield, PA; Los Angeles, CA; Leduc, AB; and Toronto, ON.
Although the two companies overlapped in the energy sector, the acquisition provided an opportunity for Stage 3 to add its data-driven approach to dewatering and solids control to new industries.
“This is an opportunity to take our capabilities into more markets and display the same quality that has thus far contributed to our track record of success,” Fred Lausen Jr., Stage 3 Separation chairman and CEO, said. “We are confident our proven and innovative processes developed for drill sites in the oilfield will have an application for improving the dewatering and waste removal processes for our newly acquired clients and those yet to come.”
A key player in the acquisition process was vice president of operations, Jarod McBride, who was promoted to the role of president with the acquisition. McBride oversees strategy, operations and the management of equipment capital and support services. He’s served at Stage 3 since 2010 and previously held key positions in the oilfield services market for the past 16 years.
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