Acquisition of BOS Solutions, Inc. Makes Stage 3 Separation One of the Largest Independent Players in Solids Control Management Across North America
HOUSTON–(BUSINESS WIRE)–Stage 3 Separation, LLC (“Stage 3”), a Texas-based separation and filtration services company, 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.
Summary of Assets Acquisition
In the spring of 2020, when oil demand plummeted to under $0, many companies in the industry faced hard financial decisions. In early May 2020, Ernst & Young Inc. was appointed as the Receiver and Manager of BOS Solutions in Canada. The Receivership was subsequently recognized by the US 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.
Strategic Benefits of Acquisition
Leaders at Stage 3 saw this as an opportunity to expand their geographical reach and service offerings beyond the energy sector.
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.
Industry and Service Offering Expansion
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.
Speaking to how the expertise at Stage 3 will apply moving forward, Fred Lausen Jr., Stage 3 Separation Chairman and CEO said, “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. 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.
“We are very excited about this new opportunity and ability to make Stage 3 a bigger player in the broader environmental services market,” said McBride. “With the added strength of an expanded fleet of centrifuges and other resources, we feel more confident than ever that we can tackle just about any challenge.”
About Stage 3 Separation
Stage 3 Separation, LLC., founded in 2009 and headquartered in Houston, TX, is known in the oil and gas industry for meeting client’s solids control needs. Primary value drivers center around the recycling and reuse of fluids and reducing waste transportation and disposal through optimized process performance. The company has an excellent safety record throughout its twenty-four hours a day, seven days a week service offering and goes beyond a simple equipment rental business model. Stage 3 project management works with clients to build efficient project scopes and determine equipment needs. Specialized technologies allow for real-time monitoring and sophisticated data capture, setting Stage 3 apart from others in the industry, and guaranteeing clear value-added results for its clients.
About BOS Solutions
BOS Solutions Inc. was founded in 2006 and headquartered in Houston, TX, and included 12 corporate family companies including BOS Solutions Ltd. which was located in Calgary, Alberta, Canada. BOS Solutions offered solid and waste processing services for a number of industries: oil and gas, construction, municipal and utility and industrial. They held several patents for proprietary processes and had one of the largest fleets of industry service equipment.
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