Nuverra will receive $165m in cash and $10m in VeroLube shares, under the terms of the agreement.
Nuverra Environmental Solutions CEO Mark Johnsrud said the vertical integration and consolidation strategy that the VeroLube and Canaccord Genuity team is focusing on is very compelling.
"Our team has done a tremendous job executing our business transformation strategy, and while we have more to do, I am very excited about our Company and its future," Johnsrud added.
The transaction, which is expected to complete in the second quarter of 2014, is subject to customary conditions, including regulatory approval and final confirmatory legal and environmental due diligence.
VeroLube, which is focusing on a consolidation of the used oil industry, is developing two re-refineries with a patented technology ReGen.
ReGen process, which will be used to recycle and process used oil, allows for 75% of re-refined outputs to be high quality base oils for use as lubricants, with the ability to produce 50% of output as Group III base oils without hydro-treating.
