By Greentech Lead America: Eco Ventures Group has
signed a Binding Letter of Intent to acquire a majority stake in a privately
held, German alternative energy corporation. The Company has not revealed the
name of the Firm. A definitive agreement for this deal is expected in June.
This Germany-based Firm is a diversified alternative
energy feedstock, transportation, heat & power production company whose
primary business is the production, processing and brokering of alternative
energy feedstocks including rapeseed, palm oil and wood.
Under the terms of the binding LOI, in exchange for 75
percent ownership of the Firm, EVGI is to make staged payments of a combination
of cash, restricted common stock equal to 30 percent of the total EVGI shares
issued and outstanding.
The Firm has posted 2011 EBITDA of $2.7 million on $27.5
million in revenue, for a 2008-2011 average annual revenue growth rate of
approximately 42 percent.
The Firm produced approximately 7,200 metric tons (2.1
million gallons) of rapeseed oil in 2011, and plans to more than triple its
capacity to approximately 25,000 metric tons (7.2 million gallons) of rapeseed
oil produced in 2012.
EVGI is nearing completion of its 3.6 million
gallon bio fuel plant at its Groveland, Florida headquarters,
which will process bio fuels from oil-rich plants and recovered cooking oils.
EVGI already has long term bio fuel off-take agreements available to it for
twice its near term 3.6 million gallon capacity, and it is actively evaluating
increasing its bio fuel production capacity substantially in 2013.
EVGI’s acquisition of the Firm will enable the Company to
source sufficient feedstock, at below market pricing, for its new 3.6 million
gallon bio fuel plant slated for completion in the second half of 2012.
“This planned acquisition is a great opportunity for
both companies, a true win-win. Just the immediate potential synergy available
to our Eco Energy Group is extraordinary, producing efficiencies that will
enable EVGI to confidently scale its bio fuels business in a highly accretive
value add for our shareholders,” said Randall Lanham, Eco Ventures Group CEO.
editor@greentechlead.com