Green Plains joins Billion Gallon Club; acquires Global Ethanol for $169M

September 30, 2010 |

In Nebraska, Green Plains Renewable Energy, announced that it has entered into a definitive agreement to acquire Global Ethanol.  Global owns two operating ethanol plants which are located in Lakota, IA and Riga, MI and have a combined annual production capacity of approximately 157 MGy.  The acquisition will increase Green Plains’ capacity by 31% to approximately 657 Mgy.

Once the transaction is closed, Green Plains will market and distribute more than one billion gallons of ethanol production on an annual basis.  Green Plains estimates the total value of the transaction at approximately $169.2 million, including approximately $147.6 million for the ethanol production facilities and the balance in working capital.

The definitive agreement provides that the proposed acquisition will be accomplished through a merger of a newly formed wholly-owned subsidiary of Green Plains with Global.

Todd Becker, President and CEO of Green Plains Renewable Energy stated, “The addition of the Global plants enables us to lower our average cost of ethanol production assets and to achieve greater economies of scale in our marketing, risk management and back office operations.”

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Category: Fuels

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