Monday December 17, 7:05 am ET
HOUSTON--(BUSINESS WIRE)--With conventional financing provided by Sheridan Asset Management, LLC of New York, Continental Fuels, Inc. (OTC BB: CFUL - News) (FWB: CIQB) has completed the purchase of all of the outstanding stock of Geer Tank Trucks, Inc. (www.geertanktrucks.com), a crude oil purchasing company founded in 1945 with five locations in North Texas and nearly $50 million in annual revenue. In this single transaction in which Geer becomes a wholly owned subsidiary of Continental, Continental has completed the next phase of its business plan by securing a consistent supply of crude oil, all of the equipment necessary to transport and process that crude and access to major crude oil pipelines to efficiently deliver the crude to market.
The transaction is the second major acquisition completed by Continental during the year. In April, Continental acquired the Brownsville Port Facility portofbrownsville.com and light crude trading business of Universal Property Development and Acquisition Corporation (OTC BB: UPDA - News) (FWB: UP1) (www.universalpropertydevelopment.com) in a transaction that resulted in UPDA acquiring a controlling interest in Continental. Since that time, Continental has expanded the storage capacity of its port facility and established significant contracts for the sale and delivery of light crude condensate originating from that facility.
In addition to financing this purchase, Sheridan has also committed a $3 million working capital credit facility to finance Continental’s operations at Geer and the port.
The Geer acquisition includes 4 pipeline terminals with connections to major pipeline companies such as Colonial, Teppco and Plains and 5 service yards in various locations throughout North Texas, more than twenty 200 bbl transports, 50 frac tanks, water hauling and disposal facilities incorporating 2 commercial salt water disposal wells and other assets and equipment invaluable to Continental’s continuing development of its business model.
“Completing this acquisition represents another leap forward in the development of our business,” remarked Continental CEO Tim Brink. “While the revenue it brings is very important, the incredible opportunities it presents cannot be overstated. The assets and business of this company correspond perfectly with the plans we have developed. In the time we have been working with the Geer management, much of which will remain intact, we have identified several additional sources of revenue and opportunities for growth and negotiated significant increases in sales margins. Continental will now have port facilities and contracts for the purchase, storage, sale and delivery of light crude in South Texas and sources, facilities and equipment to transport and deliver and contracts to purchase and sell crude in North Texas.”
Link to PR.
biz.yahoo.com |
