Renewable Energy Group Acquires California-Based Amber Resources, LLC
January 04 2022 - 4:05PM
Business Wire
Advances downstream strategy and position in
the clean energy transition
Renewable Energy Group, Inc. (REG) (NASDAQ: REGI) has acquired
Amber Resources, LLC (dba Sawyer Petroleum) and its affiliated
entities, M.O. Dion & Sons and Amber Petroleum Products. Amber
Resources is a leading Southern California full-service distributor
of diesel, gasoline, lubricants, other transportation fuel
components, industrial services and additives.
This acquisition builds upon REG’s downstream participation,
growing the company’s footprint in one of the most
renewables-focused regions in the world. Amber Resources will add
over 60 million gallons/year of diesel sales to the company’s
portfolio and a significant lubricants business as a Shell®
Prestige distributor. The deal is expected to be immediately
accretive to earnings and in line with the Company’s targeted
Internal Rate of Return.
“This deal is a strategic move for REG that enables us to build
upon our platform of direct sales, positioning us to capture full
value chain margins and drive commercial optimization, while
helping our customers achieve their decarbonization goals,” said
Cynthia (CJ) Warner, REG President & CEO. “REG provides clean
fuels that reduce carbon now, and adding the Amber Resources
products and services line to our network expands our low carbon
fuel sales opportunities in California.”
With this deal, REG adds eight locations in Southern California,
including distribution centers and three cardlock sites. REG will
continue business operations from these locations, providing
customers with uninterrupted services and an enhanced clean fuel
product offering. Amber Resources is a family of companies that has
a deep history in Southern California and is known for its top
quality products and customer service.
“Amber Resources has a long history of delivering an outstanding
customer experience in Southern California,” said previous owner,
Matt Cullen. “Joining with Renewable Energy Group is a natural next
step for our business as customers look for renewable
solutions.”
This announcement adds to recent news regarding REG’s growing
downstream business. Most notably, REG has received commitments to
supply biofuels for both rail and marine operations. In addition,
REG recently announced a partnership with Booster Fuels, a
tech-enabled mobile fueling company.
“This acquisition is the next big step in our full value chain
strategy, and we are thrilled about the future and the opportunity
to expand our downstream offerings,” said REG Senior Vice
President, Sales & Marketing Bob Kenyon. “Combining Amber
Resources’ talented professionals, best in class customer service
and expansive product line with REG’s clean fuels expertise enables
REG to become our customer’s clean energy transition partner of
choice.”
About Renewable Energy
Group
Renewable Energy Group, Inc. is leading the energy and
transportation industries’ transition to sustainability by
converting renewable resources into high-quality, sustainable
fuels. Renewable Energy Group is an international producer of
sustainable fuels that significantly lower greenhouse gas emissions
to immediately reduce carbon impact. Renewable Energy Group
utilizes a global integrated procurement, distribution and
logistics network to operate 11 biorefineries in the U.S. and
Europe. In 2020, Renewable Energy Group produced 519 million
gallons of cleaner fuel delivering 4.2 million metric tons of
carbon reduction. Renewable Energy Group is meeting the growing
global demand for lower-carbon fuels and leading the way to a more
sustainable future.
Forward-Looking
Statements
This press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995, as amended, including statements regarding REG’s strategic
growth plans and downstream offerings and strategy, downstream
participation, the addition of over 60 million gallons/year of
diesel sales and lubricants business as a Shell® Prestige
distributor, the acquisition being immediately accretive to
earnings and in line with the Company’s targeted Internal Rate of
Return, capturing full value chain margins, driving commercial
optimization, expanding low carbon fuel sales in California,
customer demand for low carbon fuels, the addition of Amber
Resources’ locations and our ability to continue business from
these locations, and REG being a clean energy transition partner of
choice. These forward-looking statements are based on current
expectations, estimates, assumptions and projections that are
subject to change, and actual results may differ materially from
the forward-looking statements. Factors that could cause actual
results to differ materially include, but are not limited to, our
inability to successfully integrate the acquired companies’
operations and accounting systems into ours, our inability to
establish and maintain effective internal controls, our inability
to successfully retain the employees, customers and suppliers of
the acquired companies, our lack of experience operating the type
of business acquired, failure to achieve expected synergies or
discover liabilities or other obligations of the acquired companies
through the diligence process, failure to capture full value and
expand low carbon fuel sales in California, limited customer demand
for low carbon fuels and REG being a clean energy transition
partner of choice, failure to continue the business from the
acquired companies locations, and other risks and uncertainties
described in REG’s annual report on Form 10-K for the year ended
December 31, 2020 and subsequently filed Form 10-Q and other
periodic filings with the Securities and Exchange Commission. All
forward-looking statements are made as of the date of this press
release and REG does not undertake to update any forward-looking
statements based on new developments or changes in our
expectations.
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version on businesswire.com: https://www.businesswire.com/news/home/20220104005773/en/
For Investors: Renewable Energy Group Todd Robinson Deputy Chief
Financial Officer and Treasurer +1 (515) 239-8048
Todd.Robinson@regi.com
For Media: Renewable Energy Group Katie Stanley Manager,
Communications +1 (515) 239-8184 Katie.Stanley@regi.com
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