Toronto-based investment firm Aumento Capital IV Corp. entered into an agreement to purchase aspiring rerefiner VeroLubes assets for an undisclosed amount.
After recently acquiring used oil collector Thermo Fluids Inc. for around $175 million last month, and announcing that it will build two rerefineries – one in Alberta, Canada, and one in Houston, Texas – VeroLube agreed to divest all its shares to Aumento in exchange for Aumentos shares on a one-for-one basis.
Expected to close this month, the deal will result in VeroLube becoming a wholly-owned subsidiary of Aumentos, according to the latters April 15 press release. Upon completion of the proposed transaction, Aumento will continue on with the business of VeroLube (which will include the business of Thermo Fluids), with VeroLube as its wholly-owned and operating subsidiary, the release noted. All directors and officers of Aumento will resign and nominees of VeroLube will be appointed.
Aumento expects that VeroLubes directors and chairpersons will remain as is, with Terrence Lyons as chairman and director, Gregory Clarkes and Leslie Wulf as directors, Ken Cherry as CEO and Bruce Hall as chief financial officer.
Aumento will seek to list the company on the Toronto Stock Exchange upon closing the deal, the capital pool company added. As a publicly traded entity, Aumento cannot disclose any other details or expectations related to the deal, Aumento spokesperson David Danziger told Lube Report. Spokespersons at VeroLube could not be reached for comment by deadline.
VeroLube previously told Lube Report that it expects to be the largest producer of commercial fuel oil from used motor oil in the western portion of the United States.
VeroLube has a pilot plant near Dallas which it uses to test its proprietary ReGen process of rerefining waste oil into API Group II and III base oil. The company does not operate a commercial rerefinery but said it plans to start building rerefineries in Alberta, Canada, and in Houston, as early as late 2014.