Pacific Ethanol sells 74% ownership in Pacific Aurora for $52.8M

In California, Pacific Ethanol, Inc. announced it has signed a definitive agreement to sell its 74% ownership interest in Pacific Aurora, LLC to the Aurora Cooperative Elevator Company (Aurora Cooperative) for $52.8 million of consideration, subject to certain working capital adjustments. Aurora Cooperative currently holds a 26% ownership interest in Pacific Aurora, LLC. Included in the sale are two ethanol production facilities with a combined annual production capacity of 145 million gallons, a grain elevator with storage capacity of 4.1 million bushels and integrated rail facilities located in Aurora, Nebraska. After working capital adjustments and the settlement of certain payables between Pacific Aurora, LLC and the Aurora Cooperative, the consideration received at closing is expected to be approximately $27 million in cash and $16.5 million in promissory notes. The sale is anticipated to close within the next 45 days, subject to customary closing conditions.