Quality Distribution Sheds Tank Wash Business
Quality Distribution has sold Quala Systems, its tank wash subsidiary, to QualaWash Holdings in a $13 million dea
Quality Distribution has sold Quala Systems, its tank wash subsidiary, to QualaWash Holdings in a $13 million deal
. The sale involved $10 million in cash, and $3 million in a subordinated note.
As part of the sale, Quala Systems has entered into various agreements with QualaWash Holdings, including long-term leases of real estate used in the tank wash business and operating agreements.
QualaWash Holdings was formed by Mike Bauer and KLH Capital, a Florida-based small business investment company. Bauer has stepped down as president of Quala Systems and is now president of QualaWash. Quality Distribution is not affiliated with QualaWash Holdings.
"This transaction is beneficial to Quality Distribution because it will further simplify our business model, allow us to focus on our core business and provide us with additional financial flexibility," said Gary Enzor, CEO of Quality.
Headquartered in Tampa, Fla., Quality Distribution, through its subsidiaries, Quality Carriers and Boasso America Corporation, and through its affiliates and owner-operators, provides bulk transportation and related services.
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