Target Hospitality Acquires SBCS Assets for $10M
Ticker: TH · Form: 8-K · Filed: Jun 11, 2024 · CIK: 1712189
Sentiment: bullish
Topics: acquisition, m&a, growth
TL;DR
Target Hospitality buys SBCS assets for $10M, closing Q3 2024.
AI Summary
Target Hospitality Corp. announced on June 11, 2024, that it has entered into a definitive agreement to acquire the assets of S.B.C.S., Inc. for approximately $10.0 million in cash. The transaction is expected to close in the third quarter of 2024 and is anticipated to be accretive to earnings per share in the first full year post-closing.
Why It Matters
This acquisition is expected to expand Target Hospitality's service offerings and geographic reach, potentially leading to increased revenue and profitability.
Risk Assessment
Risk Level: medium — Acquisitions carry inherent risks, including integration challenges, potential overpayment, and failure to achieve expected synergies.
Key Numbers
- $10.0 million — Acquisition Price (Cash consideration for S.B.C.S., Inc. assets.)
Key Players & Entities
- Target Hospitality Corp. (company) — Registrant
- S.B.C.S., Inc. (company) — Acquired entity
- $10.0 million (dollar_amount) — Acquisition price
- June 11, 2024 (date) — Announcement date
- third quarter of 2024 (date) — Expected closing period
FAQ
What is the primary purpose of this Form 8-K filing?
This Form 8-K filing is to report the entry into a material definitive agreement regarding the acquisition of assets from S.B.C.S., Inc.
What is the name of the company whose assets Target Hospitality Corp. is acquiring?
Target Hospitality Corp. is acquiring the assets of S.B.C.S., Inc.
What is the total cash consideration for the acquisition?
The total cash consideration for the acquisition of the assets of S.B.C.S., Inc. is approximately $10.0 million.
When is the acquisition expected to close?
The acquisition is expected to close in the third quarter of 2024.
What is the anticipated financial impact of the acquisition?
The transaction is anticipated to be accretive to earnings per share in the first full year post-closing.
Filing Stats: 433 words · 2 min read · ~1 pages · Grade level 10.2 · Accepted 2024-06-11 06:45:10
Key Financial Figures
- $0.0001 — h registered THCommon stock, par value $0.0001 per share TH NASDAQ Indicate by c
Filing Documents
- th8-k.htm (8-K) — 25KB
- ex99-1.htm (EX-99.1) — 8KB
- 0001712189-24-000077.txt ( ) — 169KB
- th-20240610.xsd (EX-101.SCH) — 4KB
- th-20240610_lab.xml (EX-101.LAB) — 21KB
- th-20240610_pre.xml (EX-101.PRE) — 16KB
- th8-k_htm.xml (XML) — 4KB
01
Item 8.01 Other Events. On June 10, 2024, Target Hospitality Corp. issued a press release to provide a business update on its South Texas Family Residential Center located in Dilley, Texas. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
01 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit No. Exhibit Description 99.1 Press Release dated June 10, 2024 2 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized. Target Hospitality Corp. By: /s/ Heidi D. Lewis Dated: June 11, 2024 Name: Heidi D. Lewis Title: Executive Vice President, General Counsel and Secretary 3