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GreenHunter Energy to Buy L and L Holdings for $27.5M Cash 10/29/08 12:56:53 PM
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OAKHURST, N.J. (DTN) –- GreenHunter Energy Inc. will buy Louisiana based-diesel fuel, methanol and lubricant distributor L&L Holdings, LLC for $27.5 million in an all-cash transaction, expected to close prior to year-end. L&L's customer base is approximately 1,000 and is predominately the Gulf of Mexico offshore oil and gas industry.
The acquisition of L&L Holdings, together with its wholly-owned subsidiary L&L Oil and Gas Services, LLC, includes 17 strategically located facilities along the coast of the Gulf of Mexico in La., and Texas, including deepwater terminaling assets in three different locations. The purchase of L&L also includes a 25 percent stake in Highland Marine, LLC, a dedicated tug and barge operator to L&L which owns 10 tugboats and 14 barges.
Over the last three years, annual diesel sales to L&L's customers have exceeded 130 million gallons. Upon closing, GreenHunter plans to begin the integration of its high-grade biodiesel into L&L's distribution network.
"As we continue to execute on our business plan of becoming a fully integrated biofuels company, the acquisition of L&L and more importantly, the highly motivated management team and employees who will soon become part of our organization, put us another step closer to realizing our ultimate goal. We believe the strategic locations of L&L's existing terminals along the Gulf Coast are simply irreplaceable and that our complementary asset base will give us a long-term competitive advantage," said Gary C. Evans, chairman, president and chief executive officer of GreenHunter Energy.
"The true value of these assets will ultimately be determined in the future as we integrate our biodiesel and possibly other biofuels into L&L's business operations," Evans said. "From a logistical viewpoint, our joint operations fit extremely well and give our company an enviable distribution presence along the Gulf Coast region. From a startup company of less than two years of age with no assets or revenues, GreenHunter Energy is now poised to record operating revenues approaching $750 million in fiscal 2009."
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