Quality Companies, an oilfield construction and fabrication group that has earned a spot on ABiz’s list of Acadiana’s Top 50 Privately Held Companies for the past two years, announced Tuesday that it has purchased Traco Production Services and will consolidate operations at Traco’s existing 14-acre facility on Griffen Road in Youngsville. Quality plans to invest about $2 million building an approximately 40,000-square-foot fabrication plant and “green” paint facility, as well as a 12,000-square-foot corporate headquarters.
Quality declined to disclose the purchase price.
Traco is now a sister company to Quality Construction & Production and Quality Production Management. QCP and Quality’s corporate offices are currently located at 133 Youngsville Highway in Lafayette, and QPM operates in New Iberia on Highway 90. Both of those facilities will relocate to Youngsville after construction is complete early next year.
Quality was founded by Troy Collins and Nathan Granger in 2001, and in 2007 was named one of the fastest-growing companies in America by Entrepreneur Magazine, earning a spot on its Hot 500 list.
Traco Production Services Inc., founded in 1987 by Tommy and Gaynell Allen, sells a complete line of new and refurbished ASME coded production equipment, separators, pressure vessels, instrument and electrical safety systems and complete dehydration systems, and provides professional installation and repair for most of the products it sells. Because of Traco’s ASME coded shop, Quality can now build production pressure vessels, a capability it did not have before the buyout, Granger says.
Traco was also attractive to Quality because of its concentration in onshore work. “They are very experienced in all facets of onshore work, mostly shale [including northwest Louisiana’s Haynesville Shale],” says Granger. Roughly 80 percent of Quality’s work is in the Gulf, which Granger expects to pick up at a healthy pace this year, with its onshore work mainly in North Dakota. Quality has 650 employees and Traco has about 100, Granger says. No layoffs will take place, and Quality expects the onshore expansion opportunities to create about 100 new jobs for the combined companies in the next two years.
Granger anticipates the organization will eclipse the $100 million revenue mark within three to five years. Quality reported $55 million in revenues in 2009, earning the 28th spot on ABiz’s 2010 list of Acadiana’s largest privately held companies. The 2011 list publishes July 27.