Valero to acquire seven VeraSun plants, development site in SD, NE, IA, MN and IN for $477 million; two more plants, $197 million more than initial stalking-horse bid

In South Dakota, Valero Energy will acquire seven plats from VeraSun Energy for $477 million, it was announced last night. VeraSun will receive $350 million for five refineries in South Dakota, Iowa and Minnesota, plus its development site in Indiana. The company will receive an additional $72 million for an additional Iowa plant, and $55 million for a Nebraska refinery.

The only other participant known to be participating in the VeraSun auction process, Archer Daniels Midland, said that it had not acquired any VeraSun assets. The News Journal reported that ADM  bid $444 million for the assets.

The sale of the seven plants plus the development site is an early step in the ultimate sale of all the assets of VeraSun Energy, which filed for bankruptcy protection following a series of disastrous corn contracts signed before corn prices collapsed last summer.

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