Eco Ventures Group CEO Randall Lanham said this planned acquisition is a great opportunity for both companies, a true win-win.
"Just the immediate potential synergy available to our Eco Energy Group is extraordinary, producing efficiencies that will enable EVGI to confidently scale its bio fuels business in a highly accretive value add for our shareholders," Lanham added.
"Additionally, it will be gratifying for all of us at Eco Ventures Group to contribute to U.S. energy independence from foreign oil through our bio fuel division. Longer term, we plan to leverage the Firm’s technology and market presence to expand our reach in the global alternative energy marketplace."
EVGI will remunerate the German firm in cash and 30% of its common stock for the acquisition.
Under the terms of the LOI, EVGI will also infuse capital in the combined company and can acquire the remaining 25% later.
The companies will sign a definitive agreement on 15 June; the transaction is expected to be closed in the third quarter of 2012 following EVGI secure funding for the deal.
The Germany-based firm is a diversified alternative energy feedstock, transportation, heat & power production company.
