Universal Bioenergy Signs Contract and Closes Deal With NDR Energy Group
NDR Has Multi-Million Dollar Contracts Signed With 22 Major Utilities and Projects $1 Billion in Sales.
IRVINE, Calif., (GlobeNewswire via COMTEX) [WorldofRenewables.com]
Universal Bioenergy Inc. (Pink Sheets:UBRG) announced today that it has signed the contract and completed the final closing of the transaction with NDR Energy Group LLC. Their plans are to create a leading next generation alternative energy company. On April 14, 2010 notification of the closed transaction was filed with the Securities and Exchange Commission on Form 8-K, which included a copy of the definitive agreement.
NDR markets energy and fuel such as natural gas. NDR marketed $60 – $70 million in energy and fuel in 2009. The management of NDR intends to expand, in coordination with Universal, into biofuels, solar, alternative fuels, and commercial energy efficiency conversion projects, and retrofits. NDR Energy has firm contracts signed with 22 major utility companies nationwide. It has agreements with Southern California Gas Company, Pacific Gas & Electric (PG&E), Baltimore Gas & Electric, NICOR, Michigan Consolidated Gas (MICHCON), and the National Grid, the largest power producer in New York State. It is negotiating contracts with 14 other major utility companies and suppliers.
“Our plans in coordination with NDR Energy Group, are to maximize the sales value of our utility contracts. The management of NDR Energy Group believes they can sell up to a projected $1 billion in sales of natural gas in the next twelve months. Since NDR already has firm contracts in place with 22 utilities, NDR management informed us they believe they could achieve that, and possibly up to $3 billion in fuel sales, by the end of two years. Universal acquired a 49% stake in NDR Energy. So, this acquisition should provide Universal with distribution channels for marketing biofuels, alternative fuels, solar, and green energy efficiency products to these and other new customers,” says Universal’s CEO, Vince M. Guest.
Universal’s Sr. V.P., Solomon Ali states, “We’re very excited that we’ve finally completed what we set out to accomplish. We estimate the potential profit from this acquisition, based on our 49% stake, is approximately $15 million in just the next twelve months. Although we cannot assure an actual valuation, according to industry valuation standards using average P/E ratios from Standard & Poor’s, at a multiple of 15 -17 times earnings, we believe that a market valuation of $225 million to $255 million dollars is an estimate of the potential additional value of this acquisition to Universal.”
About the Company
Universal Bioenergy Inc. is an alternative “Green Energy” company, and intends to create and market natural and alternative energy sources including Solar, Biofuels, Wind, Synthetic Fuels and related energy technology products. It plans to build the company into a prominent player in alternative green energy. For inquiries contact: Investor Relations at 888-263-2009
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SOURCE: Universal Bioenergy Inc.