OAKHURST, N.J. (DTN) -- Green Plains Inc. announced Monday that it was the successful bidder on three ethanol plants for sale by Abengoa Bioenergy conducted under the provisions of the U.S. Bankruptcy Code.
The company will purchase the Madison, Illinois, Mount Vernon, Indiana and York, Nebraska ethanol facilities, with combined annual production capacity of 236 million gallons per year, for $237 million in cash plus certain working capital adjustments.
Upon completion of the acquisitions, Green Plains will own and operate 17 dry mill ethanol facilities with combined production capacity of nearly 1.5 billion gallons per year.
"We continue to focus on making strategic investments in high quality assets as we expand our production footprint," said Todd Becker, president and CEO at Green Plains. "The Madison and Mount Vernon plants will give us access to the Mississippi River, supporting our new export terminal planned in Beaumont, Texas."
He added, "We will broaden our product offering globally with industrial alcohol production at the York plant. These acquisitions further our commitment to deliver long-term value for both Green Plains Inc. and Green Plains Partners shareholders."
The company's acquisition agreements are subject to review and approval by the U.S. Bankruptcy Court for the Eastern District of Missouri at a hearing currently scheduled for Aug. 29. The acquisition are expected to be complete no later than Sept. 30, subject to regulatory approval and customary closing conditions, at which time the ethanol storage and transportation assets will be offered to Green Plains Partners.
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