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Stabilis Energy Announces Two Strategic Transactions to Enhance its Distributed LNG and CNG Capabilities in Mexico
Acquires Diversenergy to Establish Local LNG Operating CompanyForms Joint Venture with Grupo CLISA to Invest in LNG and CNG AssetsHOUSTON, TX / ACCESSWIRE /
About this update from Stabilis Solutions, Inc.
[{"type":"text","content":"Acquires Diversenergy to Establish Local LNG Operating CompanyForms Joint Venture with Grupo CLISA to Invest in LNG and CNG AssetsHOUSTON, TX / ACCESSWIRE / August 21, 2019 / Stabilis Energy, Inc. (NASDAQ:SLNG) (“Stabilis”) today announced two strategic transactions that will expand its presence in the distributed liquefied natural gas (“LNG”) and compressed natural gas (“CNG”) markets in Mexico. Stabilis has completed the acquisition of privately held Diversenergy, LLC (“Diversenergy”) and its subsidiaries to create one of the leading distributed LNG marketing and distribution companies in Mexico. In addition, Stabilis has completed the formation of a joint venture (the “Joint Venture”) with Grupo CLISA and other former owners of Diversenergy to pursue investments in LNG and CNG assets in Mexico. Diversenergy AcquisitionAs one of the leading providers of LNG marketing and distribution services in Mexico, Diversenergy provides LNG to customers that use LNG as a fuel in mobile high horsepower applications and to customers that do not have natural gas pipeline access. As a result of the acquisition, Diversenergy and its Mexican subsidiary have become wholly owned subsidiaries of Stabilis. The transaction was structured as an equity purchase with Diversenergy’s owners receiving cash and Stabilis common stock consideration. Financial terms of the transaction were not disclosed. Lee Kellough, former CEO of Diversenergy, will serve as President of Stabilis’ Mexican subsidiary (Diversenergy S.A.P.I. de C.V.) and Senior Vice President of Stabilis. “Stabilis is pleased to announce the acquisition of Diversenergy,” said Jim Reddinger, President and Chief Executive Officer of Stabilis. “We see significant growth opportunities in the large and expanding market for LNG and CNG fuel in Mexico. We welcome Diversenergy to the Stabilis team and look forward to working together to bring clean, low cost, and abundant natural gas to our customers in Mexico.” Lee Kellough added, “We are confident that this transaction creates a solid platform for Stabilis to become a leader in the LNG and CNG markets in Mexico. We believe that we have the right combination of people, equipment, and relationships to capitalize on the substantial growth opportunities we see throughout Mexico.”Joint Venture Formed for Investment in LNG and CNG Assets in MexicoIn additi...