Vertex Energy, Inc. (NASDAQ:VTNR) saw its shares up slightly Wednesday. This, after the copany, a leading specialty refiner and marketer of high-quality refined products, today announced that it has entered into a definitive agreement to sell its portfolio of used motor oil collection and recycling assets to Safety-Kleen Systems, Inc., a subsidiary of Clean Harbors, Inc for a total cash consideration of $140 million.

The transaction is expected to close during the third quarter 2021, contingent upon regulatory clearance, various customary closing conditions and the approval of Vertex shareholders.

After retiring $6.3 million in term debt, together with the payment of transaction-related fees and financial obligations, total net cash proceeds from the transaction to Vertex are expected to be approximately $90 million. A portion of the gross cash proceeds from the transaction is planned to be used by Vertex to exercise its option to repurchase Tensile Capital’s interest in the Myrtle Grove facility located in Belle Chase, Louisiana, thereby allowing Vertex to resume 100% ownership in the asset.

Said CEO Benjamin Cowart, “This transaction will achieve several important objectives, the combination of which will advance our strategy of becoming a leading pure-play energy transition company of scale.

“First and foremost, these asset sales will allow for a full recapitalization of our balance sheet. After retiring costly term debt and other financial obligations, we expect to bring approximately $90 million of cash into our business at the close of this transaction.”

Under the terms of the Agreement, Safety-Kleen will acquire the 69 million gallon per year Marrero used oil refinery in Louisiana; the 20 million gallon per year Heartland used oil refinery in Ohio; the H&H and Heartland used oil collections business; the Nickco oil filters and absorbent materials recycling facility in East Texas; and the Cedar Marine terminal in Baytown, Texas. Collectively, these assets generated first quarter 2021 operating income of $4.5 million and Adjusted EBITDA of $5.7 million.

VTNR shares gained 40 cents at Wednesday’s open to $197.18.

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