The company is a contractor servicing oil and natural gas drilling and production that operates primarily in Texas and has an average earnings before interest, taxes (EBITDA) of 40% over the last three years.
The companies are currently finalizing the definitive acquisition agreement on which GeoBio will acquire for a combination of cash, debt and equity in GeoBio, based upon a purchase price equal to 4.5X 12-month trailing EBITDA at the closing of the purchase, with an anticipated closing within 120-days of the LOI.
GeoBio Energy CEO Laurence Shelver said the proposed acquisition will fulfill our goal to find and acquire profitable companies with good customer bases, strong and aggressive management teams with a laser focus in the gas and oil services field.
GeoBio Energy’s business model emphasizes the acquisition and operation of existing companies in the oil and gas services and energy industry.
