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Vertex Energy, Inc. (OTCQB:
VTNR) (the “
Company” or “
Vertex Energy”), a leader in the aggregation, re-refining and processing of distressed petroleum streams, today 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, N.A. (the “
Lender”) to finance the transaction. Pursuant to the Credit Agreement, the Lender provided the Company $8,500,000 in the form of a term loan and agreed to provide the Company an additional $10,000,000 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.”
Benjamin P. Cowart, Chairman and CEO of Vertex Energy said, “We are pleased to have closed this definitive agreement which we believe will further strengthen our foothold in the collection and re-refining business. We believe there are many opportunities for the newly combined businesses to increase our presence in the industry, improve profitability and shareholder value. I also want to thank our employees and shareholders for their continued support of our strategy.”
For the fiscal year ended December 31, 2011, Vertex Holdings generated revenue and EBITDA of approximately $31 million and $6 million, respectively. For the six-months ended June 30, 2012, Vertex Holdings generated revenue and EBITDA of approximately $19 million and $3 million, respectively.