DALLAS — Dallas-based Vivakor, a socially responsible company specializing in clean energy technologies and environmental solutions, announced the signing of a definitive Membership Interest Purchase Agreement (“MIPA”) to acquire Endeavor Crude, LLC, Meridian Equipment Leasing, LLC, which includes its subsidiary CPE MidCon, LLC, Equipment Transport, LLC, and Silver Fuels Processing, LLC, known collectively as the Endeavor Entities.
These entities are being acquired from Jorgan Development, LLC and JBAH Holdings, LLC, both affiliates of James Ballengee, Vivakor’s CEO.
Vivakor has signed a definitive agreement to acquire the Endeavor Entities, which operate in the midstream segment of the oil industry, for $120 million.
The acquisition is expected to create synergies for Vivakor and provide stable revenue streams through 10-year take or pay contracts with White Claw Crude, LLC. Under the terms of the agreement, Vivakor will acquire 100% of the Endeavor Entities for a combination of Vivakor common stock and non-voting convertible preferred stock.
Additional contingent consideration of up to $49 million may be payable based on 2024 EBITDA performance. The closing of the acquisition is subject to customary conditions and is targeted to occur by the end of June 2024.
Vivakor’s Chairman and CEO, James Ballengee, expressed excitement about the acquisition and highlighted the potential synergies and cost efficiencies. “We are excited to bring all of these operations and assets together under one roof at Vivakor. We believe there are strong synergies between the business segments which will allow Vivakor to capture the value chain and expect to be able to streamline operations that should result in significant cost efficiencies more completely.”
He added,” Of note, the proposed transaction requires no cash, is risk mitigated due to the 10-year take or pay contracts, and most importantly, will provide Vivakor with positive free cash-flow to support on-going growth and current operations. We look forward to moving this acquisition toward closing by the end of June and will continue to update our valued shareholders and the financial community as we move this transaction toward a successful close.”
Source: ACCESSWIRE
