SEATTLE, July 14, 2011 (GLOBE NEWSWIRE) -- GeoBio Energy, Inc. (Pink Sheets:GBOE) ("GeoBio") today announced that it has signed a definitive agreement for the purchase of Lary Archer & Associates, Inc. ("Archer"). Archer is head quartered in Weatherford, Texas, approximately 60 miles west of Dallas/Fort Worth International Airport. Archer provides services to the natural gas industry with a large array of specialty trailer mounted equipment, safety devices, mobile-nitrogen production units and flow monitoring equipment. Lary Archer, the owner of Archer & Associates, said of the purchase opportunity, "The market is here, the customers are here, everything indicates that the development and expansion of the gas fields will continue for many years to come. We need the infusion of capital that GeoBio intends to bring to expand our operations. I am looking forward to working with this group."
The Company primarily operates in the Barnett Shale area of North Texas in the vicinity of Fort Worth, but is currently expanding service into South Texas (Eagle Ford Shale) and to Louisiana (Haynesville Shale).
An excellent management team, a stable well trained staff and a strong customer base, coupled with a history of both rapid growth and profitability made Archer attractive to the GeoBio. Archer and associates had audited revenues for calendar year 2010 of $13.1 million, with an EBITDA of $4.8 million (unadjusted).
The completion of the acquisition is subject to GeoBio's raising the financing for the purchase price of Archer, which the parties currently estimate to be approximately $22 million, payable in a combination of cash, stock and a seller's note.
Laurence Shelver, CEO of GeoBio, stated, "The anticipated acquisition of Lary Archer and Associates will give us a solid presence in the Texas gas industry. We expect this to be the first of several, similar acquisitions over the coming months."
About GeoBio Energy:
GeoBio Energy's business model emphasizes the acquisition and operation of existing companies in the oil and gas services and energy industry. As oil and gas exploration continue in the face of rising demand, preparing and monitoring drilling sites and obtaining peak efficiency and production from existing, aging wells becomes increasingly important. GeoBio believes this to be a significant growth opportunity in its strategy to combine and consolidate companies in the oil and natural gas services sector. Visit GeoBio's web site: http://www.geobioenergyinc.com/
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