Green Plains nabs BioFuel Energy’s Two Ethanol Plants in $101M deal

In Nebraska, Green Plains Renewable Energy announced that it will acquire two ethanol plants of BioFuel Energy Corp. for approximately $101 million, plus working capital at closing, from an entity composed of its lender group. Green Plains intends to fund the purchase with approximately $77 million in term debt and the balance in cash.

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. Closing is expected to occur during the fourth quarter of 2013. 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.

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