HOUSTON, February 27, 2020 – Exit Partners is pleased to announce its representation of 5J Oilfield Services and 5J Trucking in a sale to SMGI. SMG Industries, Inc. (“SMGI”), a growth-oriented midstream and oilfield services company operating in the Southwest United States, acquired 100% of the membership interests of 5J Oilfield Services, LLC and 5J Trucking, LLC (“5J”) in a deal that closed on Feb. 27, 2020. 5J had been owned by James “Jimmy” Frye, a well-respected industry veteran. “Having two well-motivated parties was key to closing this transaction in today’s environment. This acquisition was accomplished despite macroeconomic and sector headwinds and record volatility in the public equity markets – exhibiting all parties’ dedication to complete an accretive transaction and results for our client,” noted Mike Stengle, Managing Partner, of Exit Partners.

First founded in 1981 in Palestine, Texas, 5J grew to include numerous locations across Texas and other oil-producing regions, providing drilling rig relocation and other heavy haul services including large compressors and midstream pipeline equipment. Frye commented that “I am excited to join SMGI in their pursuit to consolidate services for the midstream and oilfield services sector. Recent trends indicate further consolidation is coming, and our team wants to be in the driver’s seat for that change.” Mr. Frye and the 5J management team will remain in place with a plan to grow existing operations by focusing on current midstream customers and their logistics and transportation needs.

SMG Industries is a rapidly growing oilfield services company that operates throughout the Southwest United States. Through its wholly-owned subsidiaries, the company offers an expanding suite of products and services across the market segments of Drilling, Completions and Production. Services include well pad building and well site services, water transfer, down hole tools, and other services to drilling rig operators and E&P companies. Matt Flemming, SMGI CEO, said, “SMG views this acquisition as immediately accretive and strategic to its business. It will provide additional access to the midstream sector and more than 100 new non-overlapping MSAs”.