Tesoro to Acquire Renewable Technology Company
September 06 2016 - 4:30PM
SAN ANTONIO, Texas, September 6,
2016 - Tesoro Corporation (NYSE: TSO) has agreed to acquire
Virent, Inc. ("Virent"), an innovative renewable fuels and
chemicals company, to support Virent's success in bringing biofuels
technology to commercial scale.
Tesoro's renewable fuels strategy is to foster the
development of high-quality, lower-carbon, renewable feedstocks and
blendstocks that can either be co-processed in existing refineries
or blended seamlessly with traditional fuels. Tesoro believes it is
important to commercialize new technologies that meet stakeholder
expectations and regulatory requirements by producing renewable
fuels that do not compromise product quality. By generating
valuable credits, this approach may also lower Tesoro's compliance
costs with the federal renewable fuel standard and California's low
carbon fuel standard.
Virent's BioForming® technology can convert sugars
and other biomass derived feedstocks into renewable gasoline
blendstocks and aromatics, which are fully compatible with the
nation's existing fuel infrastructure and current vehicle
warranties. Virent's aromatics product can also be used for
renewable chemicals, most notably para-xylene, a key component in
polyester.
"With this acquisition, Tesoro intends to foster
more rapid commercialization of Virent's renewables technology,
which could uniquely position the Company with an improved means of
future regulatory compliance, as well as potential licensing
opportunities," says CJ Warner, Executive Vice President of
Operations at Tesoro. "Tesoro plans to provide resources and
expertise to support the scale-up and commercialization of the
technology while maintaining Virent's innovative culture and
business that are key to its success."
Tesoro will operate Virent as a wholly owned
subsidiary which will be located in Madison, Wisconsin. Included in
the acquisition are existing collaboration agreements, all
licenses, a significant intellectual property portfolio and pilot
and demonstration facilities. Tesoro plans to continue and
cultivate Virent's existing business partnerships and relationships
in order to support its mission. The transaction is expected to
close by the end of September.
About Tesoro
Tesoro Corporation, a Fortune 100 company, is an
independent refiner and marketer of petroleum products. Tesoro,
through its subsidiaries, operates seven refineries in the western
United States with a combined capacity of over 895,000 barrels per
day and ownership in a logistics business, which includes interest
in Tesoro Logistics LP (NYSE: TLLP) and ownership of its general
partner. Tesoro's retail-marketing system includes over 2,400
retail stations under the ARCO®, Shell®, Exxon®, Mobil®, USA
Gasoline(TM), Rebel(TM) and Tesoro® brands.
This press release contains
certain statements that are "forward-looking" statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934 concerning our ability
to bring biofuels technology to commercial scale; our ability to
foster the development of high-quality, lower-carbon, renewable
feedstocks and blendstocks that can be co-processed in existing
refineries or blended with traditional fuel products; the expected
benefits of this acquisition, including the ability to lower our
regulatory compliance costs by generating credits and potential
licensing opportunities; our ability to provide resources and
expertise to support the scale-up and commercialization of the
technology while maintaining Virent's innovative culture and
business; our plans to continue and cultivate Virent's business
partnerships and relationships; and the expected timing for closing
of the acquisition. For more information concerning factors
that could affect these statements see our annual report on Form
10-K and quarterly reports on Form 10-Q, filed with the Securities
and Exchange Commission. We undertake no obligation to publicly
release the result of any revisions to any such forward-looking
statements that may be made to reflect events or circumstances that
occur, or which we become aware of, after the date hereof.
###
Tesoro Contacts:
Investors:
Sam Ramraj, Vice President, Investor Relations,
(210) 626-4757
Media:
Tesoro Media Relations, media@tsocorp.com, (210)
626-7702
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Tesoro Corporation via Globenewswire
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