Vertex Energy Inc. closed on its acquisition of Heartland Group Holdings – a used oil collection network and rerefinery in Columbus, Ohio – for $16.5 million in common stock. In addition, Vertex CEO Benjamin P. Cowart purchased $1.5 million in the companies common stock.
The Houston, Texas-based oil recycling and rerefining firm announced yesterday that its acquisition of the Heartland rerefinery, which has 1,500 barrels per day of API Group II base oil production capacity and 16 million gallons per year used oil processing capacity, will bring Vertexs total processing capacity to around 135 million gallons per year.
In a press release issued yesterday, Cowart noted that the company set sights on Heartlands 6.8 million gallon per year collection network spanning Ohio, Kentucky, West Virginia and Pennsylvania as a vehicle for national expansion.
I believe that the Heartland acquisition helps position Vertex for greater growth in 2015 and beyond, Cowart said. We believe in a regional strategy which puts the right technology and the right market together. Because of the transaction, Vertex is now more flexible in its response to market challenges. Further, it enhances our national footprint and allows us to offer a diverse range of finished products.
When the two companies agreed to the acquisition in June, Vertex began consulting Heartland on its collection operations, rerefinery, installation of new equipment and other operations. Vertex said that both parties agree the process accomplished the goals of ensuring a smooth transition.
Heartland Petroleum is the sole business of Heartland Group, which was primarily owned by Omaha, Neb.-based Warren Distribution.