Green Plains to purchase two ethanol plants from BioFuel Energy

Source: by Christopher Doering, Des Moines Register • Posted: Wednesday, November 6, 2013

Ethanol maker Green Plains Renewable Energy said Tuesday it agreed to acquire two ethanol plants from BioFuel Energy for about $101 million.

The plants, located in Wood River, Neb. and Fairmont, Minn., have a combined annual production capacity of approximately 220 million gallons. Green Plains said the acquisition will increase its production capacity by 28 percent to more than 1 billion gallons of ethanol, 2.9 million tons of distillers grains and 230 million pounds of corn oil per year

The Omaha, Neb. renewable fuels maker said the transaction is expected to close before the end of the year. After the deal is completed, Green Plains said it will restart the Fairmont plant, which it anticipates being back in production by the end of this year.

“Our growth strategy remains focused on right location, right technology at the right price for ethanol production assets and this acquisition meets all three criteria,” stated Todd Becker, chief executive of Green Plains. “We believe this acquisition will be accretive to 2014 earnings and is consistent with our strategy to expand our operations throughout the ethanol value chain and grow long-term shareholder value.”

Green Plains, North America’s fourth-largest ethanol producer, operates ethanol production facilities in Lakota, Superior and Shenandoah, Iowa. The company also has a grain storage facility located in Essex, Iowa.