Pure Biofuels to Acquire Large Peruvian Biodiesel Producer

Pure Biofuels announced the execution of a binding letter of intent to acquire Interpacific Oil SAC’s biodiesel production business, Peru’s largest and longest running biodiesel processor.

Interpacific currently produces 7.2 million gallons per year (mgy) of biodiesel. The move will complement the company’s position when it completes construction on its primary biodiesel facility in Callao, Peru, expected in the fourth quarter of 2007. The purchase price for Interpacific is $6.3 million, payable $0.7 million in cash and $5.6 million in Pure Biofuels common stock. The closing of the acquisition is subject to customary conditions including the negotiation and execution of definitive agreements. “Running Interpacific’s biodiesel facility for the last five years prepared me for the launch of Pure Biofuels,” said Pure Biofuels CEO, Luis Goyzueta. “Now, bringing these two operations under our umbrella and operating at its current stage of profitability is a great privilege. It strengthens Pure’s position in the marketplace — and ultimately, it provides an earlier opportunity to fill the demand from our customers.” Pure Biofuels plans to expand the facility to a capacity of 10 million gallons per year, over two to three months following the closing. Production of biodiesel will continue while construction takes place on Pure’s main facility on land adjacent to the Port of Callao. Along with the acquisition of Interpacific Oil, the operations and management personnel for the biodiesel facility will also be transferred with the transaction, further ensuring no interruption in operations and/or distribution.
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