The largest man camp operator in the Bakken is being sold for $625 million to a multinational company that owns modular worker housing and storage facilities in several countries.
The sale of Target Logistics' Bakken properties to Algeco Scotsman is expected to close at the end of the month.
Target Logistics operates man camps in the Bakken for more than 3,400 workers with facilities in Tioga, Williston, Watford City and Dunn County. Tioga is by far its largest operation with 1,238 beds.
The company operates what's become the typical camp set up with central dining, recreation and security facilities, as well as a hotel and cabins under contract with oil companies and well service providers.
Algeco has accommodations for 11,000 workers in energy and infrastructure markets in the U.S., Canada, Australia and Latin America.
Target Logistics' spokesman Randy Pruett said the purchase won't cause any near-term changes for the company.
“Brian Lash will remain chief executive officer of Target Logistics and no role or title changes among Target Logistics management are anticipated. Target Logistics officers and managers will stay on, doing the same jobs in the same locations,” Pruett said.
He said the Target Logistics' name and logo will remain intact, with the tag “An Algeco Scotsman Co.” added to reflect new ownership.
Of the sale price, $275 million will be paid on closing in a combination of cash, Algeco stock and assumed debt and approximately $350 million will be deferred and linked to Target's financial performance over several years.