The letter of intent (LoI) contemplates GeoBio Energy’s payment for the acquisition with a combination of cash, a note and the assumption of the distributor’s debt.
GeoBio noted that the fuel distributor is the first target of its roll-up strategy for acquiring profitable petroleum distribution companies in the southwestern US.
Within the next 12 months the company intends to acquire three to four additional distributors, with combined revenues of approximately $150 million. The LoI requires the parties to enter into a definitive agreement following a customary due diligence review period.
