Universal Bioenergy Signs Letter of Intent to Acquire NDR Energy Group to Create Next Generation Greentech Energy Company
Tuesday, February 02, 2010 7:31:18 AM ET
Universal Bioenergy Inc. (Pink Sheets:UBRG), a greentech alternative energy company, announced today that it is has signed a Letter of Intent to acquire NDR Energy Group LLC, an energy/fuel marketer, to create a next generation alternative energy company.
NDRs focus has been in marketing energy and fuel commodities such as natural gas, and transportation of petroleum fuels. Management has been informed that NDR marketed and brokered $60 - $70 million in energy and fuel in 2009. NDR is seeking to expand into biofuels, propane gas, and commercial/residential energy efficiency conversions and retrofits. Some of NDRs clients are Southern California Gas Company, Pacific Gas & Electric, and the National Grid, the largest power producer in New York State.
Universals Sr. V.P., Solomon Ali states, "Were very excited about the potential of our venture with NDR Energy. We believe this will allow us to market biofuels, solar, and greentech products, to NDRs existing customer base and through its sales outlets and distribution channels. Based solely on our initial due diligence, we believe that if the acquisition is completed, the potential operating profit to be generated from this acquisition is estimated at $1.2 to $1.8 million annually. According to industry valuation standards using average P/E ratios from Standard & Poors, at a multiple of 15 -17 times earnings, a valuation of $9 to $15 million dollars is an estimate of the potential additional value of this acquisition alone to Universal."
The final terms and conditions of the acquisition are being negotiated, and will be determined in the definitive agreement. No assurances can be provided that a definitive agreement will be executed. Execution of a definitive agreement is subject to, among other things, confirming due diligence by Universal, standard regulatory approvals, and other conditions and approvals by both companies management and board of directors.
About The Company
Universal Bioenergy Inc. is an alternative "Green Energy" company, and intends to create and market alternative energy sources including Solar, Biofuels, Wind, Synthetic Fuels and other related energy technology products. It plans to build the company into a prominent player in alternative green energy.
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For inquiries contact: Investor Relations at 888-263-2009
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SOURCE: Universal Bioenergy Inc.
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