Danbury-based NTR Acquisition Co. announced it has agreed to acquire Kern Oil & Refining Co. of Bakersfield, Calif. The news comes as the company also prepares to rename itself.
NTR will pay a cash consideration of $286.5 million and also pick up inventory and other net working capital estimated to be $35 million in the deal, slated for completion in the first quarter of 2008.
Kern has recorded earnings before taxes of approximately $44 million in the first seven months of fiscal year 2007. “Kern provides an ideal platform for NTR to execute its business plan with the availability of heavy crude oil, reliable operations and an experienced management team,” said Mario E. Rodriguez, CEO of NTR, in a prepared statement.
In connection with the acquisition, California-based Occidental Petroleum Corp. has agreed to make a $35 million investment in NTR. NTR Acquisition Co. also plans to change its name to NTR Energy Co.
“We are pleased to have agreed to our first acquisition within nine months of our IPO (initial public offering) and we look forward to capitalizing on additional acquisition opportunities that, like Kern, fit within our stated investment criteria,” said Rodriguez. “In addition, our partnership with Occidental Petroleum will help us build on Kern”™s success.”
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