|SEMCO Energy Acquires Houston Firm|
PORT HURON, Mich., Nov. 3 /PRNewswire/ -- Continuing its focus on expansion and growth into unregulated arenas which are strongly related to its core competencies, SEMCO Energy, Inc. (Nasdaq: SMGS), has acquired Oilfield Materials Consultants, Inc., a consulting and quality assurance/quality control company serving the natural gas, oil transmission, and exploration/production industry for 905,000 shares of SEMCO Energy stock and the assumption of approximately $1.1 million in debt. Oilfield Materials Consultants employs 220 people and for the 9-month period ended September 30, 1998 had gross revenue (unaudited) of $12,445,000. The transaction will be accounted for as a pooling of interests. Oilfield Materials Consultants will operate as a subsidiary of SEMCO Energy Ventures, Inc.
William L. Johnson, Chairman, President and Chief Executive Officer of SEMCO Energy, Inc., made the announcement today. "The acquisition of Oilfield Materials Consultants is a natural fit with SEMCO Energy's current businesses as well as future ventures in the regulated and nonregulated natural gas industry and is consistent with our strategic plan."
Oilfield Materials Consultants has its head office in Houston. The company provides highly qualified and experienced personnel to the natural gas, petroleum, and petrochemical industries. The company monitors and inspects service companies, contractors, manufacturers and fabricators to ensure adherence to customer and/or industry standards and specifications in the manufacture, fabrication and maintenance of coatings, tubular goods and engineered equipment. Oilfield Materials Consultant's expertise includes quality control and quality assurance verification services for on- and off- shore operations. Among its clients are numerous large national and international producers and pipeline companies.
Oilfield Materials Consultants is SEMCO Energy's third acquisition this year. In March SEMCO acquired Hotflame Gas, Inc., the largest supplier of propane gas in northern Michigan and northeast Wisconsin. In May, it acquired King Energy & Construction, a small Knoxville, Tennessee-based natural gas, water and sewer infrastructure construction company.
"Our strategy is to roll these and other engineering and construction operations up into a much larger organization that allows SEMCO Energy to offer turn-key engineering, design and construction support to a national, if not international, customer base. We believe this strategy offers exceptional growth potential," Johnson said.
SEMCO Energy, Inc., an energy-focused holding company, has three first-
tier subsidiaries: SEMCO Energy Ventures, Inc., an unregulated division which
acquires and operates businesses involved in natural gas construction, energy
engineering and propane, SEMCO Energy Services, Inc., an unregulated division
which markets natural gas in parts of the United States and Canada; and SEMCO
Energy Gas Company, a natural gas distributor serving 240,000 customers in 24
counties in Michigan.
|"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding SEMCO Energy's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.|