Delek US Holdings, Inc. (DK: Quote) announced that has it entered into an agreement to purchase a biodiesel production facility and related assets based in Cleburne, Texas from EQM Technologies & Energy, Inc. (EQTE) for about $5.3 million.
The company said that this transaction is expected to close on or before January 23, 2013.
Commenting on the biodiesel facility, Delek US said it has a production capacity of about 12 million gallons per year. Delek US intends to spend approximately $3.0 million in capital expenditures during 2013 to improve the feedstock flexibility of this facility.
At present, the facility produces biodiesel exclusively for Delek US and its affiliates under a tolling agreement. The tolling agreement will terminate upon completion of this transaction, the company stated.
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by RTT Staff Writer
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