Alto Ingredients sells Stockton ethanol plant to Pelican Acquisition for $24M cash
In California, Alto Ingredients, Inc. has sold its fuel ethanol production facility in Stockton, CA to Pelican Acquisition LLC for $24.0 million in cash, of which $16.2 million of the proceeds were used to retire the remaining portion of the company’s outstanding term debt. The company is now term debt free.
Michael Kandris, Alto Ingredients’ president and CEO, stated, “With the sale of our Stockton facility, we have successfully completed the rationalization of our fuel-grade ethanol operations. The benefits of this effort are significant, improving the company’s profitability, strengthening our balance sheet, and retiring all of Alto’s remaining high-cost and restrictive term debt.
“Through our subsidiary Kinergy Marketing, LLC, Alto Ingredients will continue to support the Stockton facility as a terminal for renewable fuel sales. Upon the resumption of the Stockton production facility, Kinergy Marketing will be the exclusive marketer for the production gallons.”
Category: Fuels
