Renewable Energy Acquires Amber Resources for Undisclosed Amount
This article was originally published on TipRanks.com
Biodiesel production company Renewable Energy Group, Inc. (NASDAQ: REGI) recently revealed that it has acquired Southern California-based fuel distributor Amber Resources, LLC. The financial terms of the deal have not been disclosed so far.
The acquisition is expected to enhance Renewable Energy’s presence in one of the fastest growing renewables-focused regions in the world, adding eight locations in Southern California, including distribution centers and three cardlock sites.
Renewable Energy expects the acquisition to be immediately accretive to earnings and in line with the company’s targeted Internal Rate of Return.
The CEO of Renewable Energy, Cynthia (CJ) Warner, said, “This deal is a strategic move for REG that enables us to build upon our platform of direct sales, positioning us to capture full value chain margins and drive commercial optimization, while helping our customers achieve their decarbonization goals. REG provides clean fuels that reduce carbon now, and adding the Amber Resources products and services line to our network expands our low carbon fuel sales opportunities in California.”
See Top Smart Score Stocks on TipRanks >>
Consensus among analysts is a Strong Buy based on 3 unanimous Buys. The average Renewable Energy price target of $79 implies upside potential of 76.7% from current levels. Shares have declined 40.6% over the past year.
Hedge Fund Confidence
TipRanks’ Hedge Fund Trading Activity tool shows that hedge fund confidence in Renewable Energy is currently Negative. Moreover, the cumulative change in holdings across the two hedge funds that were active in the last quarter was a decrease of 15,600 shares.
Download the mobile app now, available on iOS and Android.
Algonquin Closes Acquisition of New York American Water
Lockheed Martin Reveals its F-35 Program Growth in 2021
Ford Increases EV Vehicle Production amid Strong Demand