GPRE buys two ethanol plants from BioFuel Energy for $101 million

November 5, 2013 |

In Nebraska, Green Plains Renewable Energy announced that it has entered into a definitive agreement to acquire two ethanol plants of BioFuel Energy Corp. from an entity composed of its lender group. The ethanol plants are located in Wood River, NE and Fairmont, MN. BIOF had previously agreed to transfer the ethanol plants to the lender group entity pursuant to a deed in lieu of foreclosure. Following the transfers, Green Plains will purchase the ethanol plants and certain related assets from the lender group entity. The two facilities have a combined annual production capacity of approximately 220 million gallons. The acquisition will increase Green Plains’ production capacity by 28% to over 1.0 billion gallons of ethanol, 2.9 million tons of distillers grains and 230 million pounds of corn oil per year.

Green Plains will purchase the ethanol plants for approximately $101 million, plus working capital at closing. Green Plains intends to fund the purchase with approximately $77 million in term debt and the balance in cash. The closing of the transaction, which is expected to occur during the fourth quarter of 2013, is subject to customary closing conditions and regulatory approvals. Upon successful completion of the transaction, Green Plains will work to restart the Fairmont, MN plant, which the Company anticipates being back in production by the end of 2013.

Print Friendly, PDF & Email

Tags: , ,

Category: Producer News

Thank you for visting the Digest.