Vertex Energy, Inc. has announced that it is to enter into an asset purchase agreement with Omega Holdings Company, LLC and certain of its wholly owned subsidiaries.
In accordance with the agreement, Vertex has agreed to acquire Omega’s assets related to the re-refining and processing of used motor oil and the distribution of fuel oils and base lubricating oils.
The acquisition is to cost US$ 30.75 million, 2 trillion shares of Vertex’s common stock (currently valued at approximately US$ 7.5 million), and the assumption of approximately US$ 9.7 million in capital leases and other liabilities. One million shares of stock will be held in escrow to satisfy post closing obligations, liabilities and indemnities.
The acquisition is planned to close in two separate closings, the first of which is expected by 15th April 2014, and the second during the 3rd quarter of 2014.
Vertex has additionally agreed to provide the seller with a US$ 1.6 million short term line of credit loan to fund the operations of the seller between the first closing and second closing.
Benjamin P. Cowart, Vertex’s Chairman and Chief Executive Officer, commented: ‘We are pleased by this agreement with Omega Holdings Company as it highlights Vertex’s strategy to enhance its footprint and value nationally.
‘Omega represents over 80 million gal. of re-refining capacity of used motor oil in the US. We expect the acquisition to be accretive immediately. At the completion of this acquisition, we will have a combined re-refining capacity of approximately 110 million gal. of used motor oil’.
Adapted from a press release by Emma McAleavey.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/25032014/vertex_energy_re-refining_302/