Chiron Awarded Energy Deal of the Year
Successful Acquisition of 5J Transportation Group Completed Amid Volatile Markets and Industry Distress
Houston, October 18, 2021 – Chiron Financial LLC (“Chiron”) today announced it has been awarded Energy Deal of the Year under $1 billion from The M&A Advisor for its outstanding achievement in securing 100% financing for SMG Industries’ acquisition of 5J Transportation Group. Chiron’s assistance with opportunity presentation and its contacts with more than 400 potential lenders and investors positioned Chiron to close the transaction without any equity contribution from SMG’s legacy business.
The February 2020 purchase of 5J Transportation Group, an oilfield services heavy haul, logistics and mobilization company, by Houston-based SMG Industries (OTCOB: SMGI) was the company’s entrée into transportation services as part of a buy and build acquisition strategy for its new transportation services division. Chiron was undeterred by the volatile oil and gas market, deeply distressed oilfield services industry and scarcity of equity investors when it was engaged in Summer 2019, and Chiron rapidly made multiple adjustments to the financing structure in response to weakening business conditions. SMG has continued to operate and build its business despite the challenges of the pandemic and the industry cycle.
Joe Page, Bill Herrington and Daniel Martinez with Houston-based Amerisource Business Capital, a non-bank finance company, provided a revolving credit facility and an equipment term loan. David Levy, Renee Renate LaCroix and Igor Zelidman with Utica Leaseco, LLC, a non-bank specialized equipment financing company based in Rochester Hills, Michigan, led the financing for a first lien equipment loan. Other third-party financiers, investors, and advisors included Larry Glenn, energy practice head, and Katelyn Van Sickel, associate attorney, at Crady Jewett McCulley & Houren LLP, a diversified law practice in Houston; corporate attorney Mario Talerico with Honigman, a business law firm based in Detroit, Michigan; buyer’s counsel Jody Samuels; equipment appraiser Aaron Walton with Gordon Brothers, a global leader in asset valuations; and seller’s representative Mike Strengle with Exit Partners, an independent M&A investment banking firm in Plano, Texas.
The internal transaction team at SMG Industries was led by Matt Fleming, chief business development officer, and Jimmy Frye, CEO of privately held 5J Trucking based in Palestine, Texas. Chiron’s internal transaction team included managing directors Jay Krasoff, Todd Hass and Michael Miller and vice presidents Eddie Gautier-Winther and Johann Bösch-Salcedo.
“Chiron is honored to receive this coveted award from The M&A Advisor, which has a rich history of recognizing the world’s leading M&A, financing and restructuring professionals through its annual awards program,” said Scott Johnson, principal and managing director at Chiron.
“The group of third-party investors, financiers and advisors with which Chiron had the privilege of working was instrumental in the successful structuring of this transaction, and we can take collective pride in this award from The M&A Advisor,” said Jay Krasoff, also a principal and managing director at Chiron.
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About Chiron Financial LLC
Chiron and its affiliates comprise a FINRA-registered investment banking organization that arranges private placements of debt and equity capital, and provides financial advisory services relating to mergers, acquisitions, and divestitures for middle market companies. Chiron raises growth capital and restructuring capital, and it assists with refinancing, financial restructuring (both inside and outside of Chapter 11), and other special situations. Clients include companies in a wide breadth of industries including oil and gas, oilfield services, midstream and downstream energy, power, healthcare, manufacturing, agriculture, retail, building products, advanced materials, real estate, specialty finance, and non-profits.