Vertex Energy, Inc. entered into a definitive agreement to acquire Mobile Refinery Located in Mobile, Alabama from Equilon Enterprises LLC, Shell Oil Company and Shell Chemical LP for $75 million.
May 25, 2021
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Vertex Energy, Inc. (NasdaqCM:VTNR) entered into a definitive agreement to acquire Mobile Refinery Located in Mobile, Alabama from Equilon Enterprises LLC, Shell Oil Company and Shell Chemical LP for $75 million on May 26, 2021. The consideration for this transaction is $75 million in cash plus the value of the hydrocarbon inventory. As part of this deal, Shell and Vertex Energy will have crude supply and product offtake agreements to support Shell's customers in the region. Concurrent with this arrangement, Vertex will enter into a separate, long-term agreement under which Idemitsu Apollo Corporation will purchase 100% of the Mobile refinery's renewable diesel fuel production. The sale of all conventional and unconventional fuels will be priced against spot market index prices. Vertex expects to fund this transaction and the related renewable diesel capital project through a $125 million debt facility and cash generated through potential asset divestitures, with the balance coming through the sale of common equity, if required. At closing, Vertex will acquire the Mobile refinery's existing hydrocarbon inventory through funding provided by Bunker One. The hydrocarbon inventory will be valued at closing based on actual volumes and prevailing market prices. Vertex expects to retain the approximately 200 employees currently engaged in the business being acquired. The transaction is subject to regulatory clearance and various closing conditions and is expected to close during the fourth quarter 2021. Vertex engaged Donovan Ventures as investment banking counsel and Vallum Advisors as financial communications counsel on the transaction.
Vertex Energy Inc. is an energy transition company that specializes in producing both renewable and conventional fuels. The Company is engaged in operations across the petroleum value chain, including refining, collection, aggregation, transportation, storage and sales of aggregated feedstock and refined products to end-users. Its segments include Refining and Marketing and Black Oil and Recovery. The Refining and Marketing segment is engaged in the refining and distribution of petroleum products and includes the Mobile Refinery and related operations. In addition, it aggregates a diverse mix of feedstocks petroleum distillates, transmix and other off-specification chemical products. The Black Oil business is engaged in operations across the entire used motor oil recycling value chain including collection, aggregation, transportation, storage, refinement, and sales of aggregated feedstock and re-refined products to end users. It owns a fleet of 68 collection vehicles.
Vertex Energy, Inc. entered into a definitive agreement to acquire Mobile Refinery Located in Mobile, Alabama from Equilon Enterprises LLC, Shell Oil Company and Shell Chemical LP for $75 million.
VERTEX ENERGY, INC. 
