(MENAFN- ProactiveInvestors - N.America) Industrial waste recycling services firm Vertex Energy (NASDAQ:VNR) has sold its Churchill County Nevada refinery facility for $35mln to Clean Harbors (NYSE:CLH).
Around $14mln of the consideration was used to purchase the facility and equipment that Vertex had been leasing otherwise the sale could not have gone ahead.
"This transaction benefits Vertex Energy in a variety of ways not the least of which is by strengthening our balance sheet' said Benjamin Cowart chairman and chief executive officer of Vertex.
'As we noted in our third quarter Form 10-Q filing and on the conference call that followed the Churchill County facility had an average carrying cost of $1.5 million per quarter. We eliminate those costs with this transaction. At the end of the third quarter of 2015 our cash and cash equivalents were over $4 million. This sale and related transactions will bring that cash position to more than $10 million. We also used $16 million of sale proceeds to pay down our term debt" he added.
The cash will allow Vertex Energy to make acquisitions should the opportunity arise.
Eric Gerstenberg chief operating officer of Clean Harbors said: 'The Nevada facility is strategically located and aligns with our plans to increase our re-refining presence in California and other West Coast lubricant markets. As we pursue our closed loop direct sales strategy this plant provides an opportunity to scale our blended operations in the Western US where we currently have no capability. We are confident that the facility will complement our existing re-refining network through transportation efficiencies additional storage and processing capabilities.'
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