Vertex Energy sells used motor oil collection and recycling business for $90M

Vertex Energy announced that it has sold its Heartland used motor oil collection and recycling business to a wholly owned subsidiary of GFL Environmental for total cash consideration of $90M. The transaction was completed pursuant to the entry into a sale and purchase agreement which closed at the time of signing, on February 1. Under the terms of the transaction, GFL acquired Vertex’s 20M gallon per year Heartland used motor oil UMO refinery in Ohio and the associated Heartland UMO collections business. Transaction facilitates continued improvement of balance sheet health. After fees, total net cash proceeds from the transaction are approximately $85M. The Company may use some of the transaction proceeds to reduce outstanding debt on its balance sheet. The improved operational focus on the Mobile refining facility comes almost concurrently with anticipated mechanical completion and subsequent start-up of initial renewable diesel production which is currently expected to be completed in the second quarter 2023. "We believe that the divestiture of our used motor oil business at Heartland, while a significant element of our Company’s history and roots, will reflect another step forward in the greater transformation of our business into an energy transition story of scale. "