GeoBio Energy has signed a letter of intent to acquire all of the ownership interests of a Grand Junction, Colorado based Pipeline Construction Company.
The Pipeline Construction Company is a contractor servicing the oil and natural gas drilling, production and transmission industry that operates in the Piceance Creek Basin in Colorado, Wyoming, North Dakota, Utah and New Mexico.
GeoBio and the Pipeline Construction Company are currently finalizing the definitive acquisition agreement, under which GeoBio proposes to acquire the Pipeline Construction Company for a combination of cash, debt and equity in GeoBio, with an anticipated closing within 120-days of the LOI.
GeoBio expects to grow organically by expanding geographically through the existing relationships of its pending business acquisitions and taking advantage of synergies between the customer bases of Magna and the Pipeline Construction Company.
GeoBio incoming CEO John Sams said that the company anticipates that the Pipeline Construction Company, along with Magna, provides a solid platform for potential, long term growth, expansion and profitability.