Boston, MA 03/24/2014 (wallstreetpr) – Vertex Energy Inc (NASDAQ:VTNR), an environmental services company involved in the recycling of commercial chemical products and industrial wastes, will release its fourth quarter and full-year 2013 earnings Tuesday, March 25. The management announced that the release of the financial results will be followed by a conference call at 10:00 a.m. EDT. As usual, the management will use the call to put their financial results into perspective and reveal growth plans for the upcoming quarters and the year.
However, the Tuesday release of earnings data will come on the back of a recently disclosed expansion plan where the company announced cash and equity acquisition of oil re-refining assets.
Assets acquisition
Vertex Energy Inc (NASDAQ:VTNR) announced last week that it had entered into an acquisition agreement with Omega Holdings Company. The agreement involves takeover of the used-oil re-refining assets of Omega in a cash and common stock transaction. Thus, Vertex will pay out roughly $30.8 million in cash and issue 2 million common stock shares to cement the deal. And in return, it will assume the ownership of the used-oil recycling assets as well as $9.7 million in liabilities and capital leases related to the acquired assets.
The assets in question are involved in recycling of motor oil and distribution of base lubricants and fuel oils. The strategic acquisition is expected to boost Vertex’s re-refining capacity by more than 80 million gallons. Moreover, Vertex will also benefit from the expansion of its engineering talent and capacity by assuming ownership of the assets. The management of Vertex in a press release last week also revealed that the acquisition will significantly put the company at the forefront of benefiting from the opportunities relating from the dynamic nature of the industrial waste recycling.
More about the deal
The company announced that the deal to takeover oil re-refining and distribution assets from Omega will have two separate closings. The first closing is expected on April 15 and the second closing is expected to come during the third quarter of the current fiscal year. The companies also agreed that Vertex Energy Inc (NASDAQ:VTNR) will provide a credit line of $1.6 million to Omega to facilitate the second part of the deal that is expected to close in the third quarter.
Vertex Energy Inc (NASDAQ:VTNR) investors were visibly impressed with the acquisition deal. The previous session saw the stock trading almost 10 times the daily average shares volume. Shares changed hands at $5.54, up 19.14 percent by closing bell.
