Vertex Energy Acquires Vertex Holdings, Enters Into $18.5MM Loan
Vertex Energy, Inc., a provider in the aggregation, re-refining and processing of distressed petroleum streams, announced that it has closed the acquisition of substantially all of the assets and liabilities of Vertex Holdings and entered into a credit agreement with Bank of America to finance the transaction. Pursuant to the credit agreement, the lender provided the company $8.5 million in the form of a term loan and agreed to provide the company an additional $10 million revolving credit facility.
David Phillips, a member of Vertex Energy’s Board of Directors and the chairman of the Related Party Transaction Committee, stated, “We are excited to have closed the purchase agreement and completed the acquisition of these valuable assets, which will allow us to operate as a vertically integrated company that spans the full value chain within our industry, from feedstock collection through processing and end-product sales. We look forward to continuing to grow our operations with funding available through the revolving credit facility and building on economies of scale while streamlining our business with the assets acquired through the purchase agreement.”
As a result of the closing of the purchase agreement, the company, through the acquired company, owns the intellectual property relating to the Thermal Chemical Extraction Process (TCEP). Prior to the closing, Cedar Marine had conducted the TCEP re-refining process at the Cedar Marine facility on behalf of the company. This acquisition is part of the company’s vertical integration strategy to own and operate collection and re-refining businesses. The company expects the acquisition to be accretive to earnings per share in 2013.
Vertex Energy, Inc. is a provider in the aggregation, re-refining and processing of distressed petroleum streams, such as used oil, transmix, fuel oils and off-specification commercial chemical products, thereby reducing the United States’ reliance on foreign crude oil.