Green Plains sells Bluffton ethanol plant
A Bluffton facility was among three ethanol plants Green Plains Inc. has agreed to sell in an asset purchase agreement to Valero Renewable Fuels Co. for $300 million in cash and about $28 million in working capital.
The other facilities are in Lakota, Iowa and Riga, Mich. With a combined maximum output of 280 million gallons, the three plants provide 20 percent of Green Plains’ ethanol production capacity.
“The sale of these three ethanol plants demonstrates our commitment to strengthening our balance sheet and unlocking value for our shareholders,” Todd Becker, Green Plains president and CEO, said in a statement. “We will continue with our optimization plan and anticipate communicating additional transactions in the near future.”
Green Plains had announced plans in May to strengthen its balance sheet and unlock shareholder value by repositioning assets through a portfolio optimization program. It said the sale was a first step toward reducing or eliminating its term debt by the end of the year.
“We are pleased to reach this milestone for Green Plains and look forward to completing the transaction in the near term,” Mark Fisler said in the statement. Fisler is managing director for Ocean Park, the seller’s lead financial advisor on the deal.
With the required regulatory approvals, the companies expect the transaction to close before the quarter ends.
Related articles: Bluffton ethanol plant included in $328M deal from Inside INdiana Business