Earth Biofuels acquires distributor

Jan. 1, 2006
Earth Biofuels Inc has acquired The Wing Sail Co Inc, dba Distribution Drive, through a share exchange agreement. As a result, Distribution Drive is a

Earth Biofuels Inc has acquired The Wing Sail Co Inc, dba Distribution Drive, through a share exchange agreement. As a result, Distribution Drive is a wholly owned subsidiary of Earth Biofuels.

Distribution Drive has distributed biodiesel fuel since October 2003, initially in Texas. Over the past two years, the distribution network has grown to include customers in Georgia, South Carolina, and portions of California. In January 2005, Distribution Drive became the only distributor of Willie Nelson's “BioWillie” biodiesel fuel.

Tommy Johnson, chief executive officer of Earth Biofuels, said, “This acquisition provides an immediate distribution vehicle for Earth Biofuels' biodiesel fuel. Distribution Drive currently distributes both 100% biodiesel fuel (B100) as well as 20% blended biodiesel (B20) and is able to take advantage of government biodiesel tax credits. Distribution Drive's delivered volumes of B100 biodiesel have grown over the past 10 months at an average rate of over 30% per month.”