Grapevine-based GreenHunter Energy to acquire L&L Holdings for $27.5 million

by PegNews wire

GRAPEVINE — Greenhunter Energy announced today the execution of a definitive agreement to acquire one of the leading marine based diesel fuel, methanol, and lubricant suppliers located along the Gulf of Mexico. The acquisition of L&L Holdings, LLC, together with its wholly-owned subsidiary L&L Oil and Gas Services, LLC, based out of Metairie, Louisiana, includes seventeen strategically located facilities along the coast of the Gulf of Mexico in Louisiana and Texas, including deepwater terminaling assets in three different locations, which primarily service the offshore oil & gas industry.

The acquisition of L&L also includes a 25% interest in Highland Marine, LLC, a dedicated tug and barge operator to L&L which owns ten tug boats and fourteen barges.

GreenHunter Energy will acquire L&L in an all cash transaction scheduled to close prior to year-end for total consideration of approximately $27.5 million. L&L has an operating history that exceeds 50 years and includes approximately 160 employees. GreenHunter Energy has received and is currently evaluating a number of different proposals from third parties to finance the acquisition which should be non-dilutive to existing shareholders.

L&L’s existing customer base is approximately 1,000 and is predominately the Gulf of Mexico offshore oil and gas industry. Over the last three years, annual diesel sales to L&L’s customers have exceeded 130 million gallons.

Commenting on the acquisition of L&L, Gary C. Evans, Chairman, President, and CEO of GreenHunter Energy, stated, “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. 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. 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 start-up 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.”

Danny Brown, President of L&L Oil and Gas Services, commented, “Becoming a meaningful part of the GreenHunter Energy organization should benefit our broad customer base in a number of important ways. We will be working alongside a group of entrepreneurial individuals who are determined to build an enterprise that will have a meaningful impact on the fuel distribution market unlike that which we have previously known. After being owned by several foreign institutions for a number of years, we are proud to become part of a US-based enterprise once again.”

Source: Greenhunter Energy