Why Are Quest Resource Shares Surging Today?

Quest Resource Holding Corp QRHC acquired two national asset-light waste and environmental services businesses, RWS Facility Services, LLC and InStream Environmental, LLC, for a total consideration of $44 million.
Quest Resource agreed to acquire the membership interests of Chadds Ford, Pennsylvania-based RWS for $33 million in cash and assets of Greenville, South Carolina-based InStream for $11 million.
These acquisitions will expand Quest Resource's presence in the commercial property space and meaningfully add to its industrial market customer base.
The combined transaction is estimated to add more than $80 million of revenue, ~$2.2 million in net income, and $5.5 million in adjusted EBITDA. The company expects the transactions to be accretive on a free cash flow per share basis.
Quest Resource amended its lending agreement with Monroe Capital, increasing its borrowing facilities up to $75 million. It held cash and cash equivalents of $9.1 million as of September 30, 2021.
According to a regulatory filing, the company's 10% Owner Barry M. Kitt has bought 450K shares in the company in a series of transactions from December 3 through 7th, 2021.
Price Action: QRHC shares are trading higher by 18.6% at $6.7 on the last check Wednesday.