Delek US Holdings, Inc. (NYSE: DK), a diversified energy company with assets in the petroleum refining, retail and logistics industries, announced that it entered into an agreement to purchase a biodiesel production facility and related assets based in Cleburne, Texas from EQM Technologies & Energy, Inc. (OTCQB: EQTE) for approximately $5.3 million. This transaction is subject to standard closing conditions and is expected to close on or before January 23, 2013.
“This acquisition further integrates our operations by improving our feedstock flexibility for blending biodiesel at our Tyler refinery. We will continue to explore opportunities to grow our business and return value to our shareholders during 2013.
The biodiesel facility has a production capacity of approximately 12 million gallons per year. Delek US intends to spend approximately $3.0 million in capital expenditures during 2013 to improve the feedstock flexibility of this facility. At present, the facility produces biodiesel exclusively for Delek US and its affiliates under a tolling agreement. The tolling agreement will terminate upon completion of this transaction.
“We ended 2012 with approximately $600 million of cash and a net cash position of approximately $240 million, which provides us the ability to take advantage of opportunities to grow and expand our operations,” remarked Uzi Yemin, Chairman, President and Chief Executive Officer of Delek US. “This acquisition further integrates our operations by improving our feedstock flexibility for blending biodiesel at our Tyler refinery. We will continue to explore opportunities to grow our business and return value to our shareholders during 2013.”
Source: Business Wire
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