Omaha-based Green Plains Inc., continues its divestment from the ethanol industry, announcing on Tuesday it has sold its 100-million-gallon plant in Hereford, Texas, to Hereford Ethanol Partners, L.P.
According to a news release from the company the plant sold for $39 million.
Green Plains Hereford LLC also entered into an asset purchase agreement with Green Plains Partners LP to acquire storage and transportation assets including railcar leases associated with the Hereford ethanol plant for $10 million.
"The sale of the Hereford ethanol facility allows us to reallocate capital to support the accelerated buildout of our Ultra-High Protein technology and continue our total transformation to an ag-tech focused company," said Todd Becker, Green Plains president and chief executive officer.
"We determined that this location was not optimal for our growing focus on sustainable proteins and novel ingredients and were pleased to find a partner interested in pursuing several identified carbon capture opportunities. In addition, this location can be further optimized to lower carbon intensity scores which will benefit our shareholders in the future, if and when realized."
Green Plains Inc. continues to remake its company, this time exiting a cattle business it entered just six years ago.
In October, Green Plains exited the cattle business when it announced an $80 million deal with a group of investment funds.
Green Plains entered the cattle feeding industry in June 2014, with the purchase of Supreme Cattle Feeders, a 70,000-head feedlot in Kismet, Kansas.
Green Plains Cattle Company became the fourth-largest cattle feeder in the United States, with a total capacity of more than 355,000 head in six feedlots in Colorado, Kansas and Texas.
Green Plains also continues to operate 12 ethanol plants totaling nearly 1 billion gallons of production capacity. The company has sold five of its plants.
In May 2018, Green Plains announced intention to reposition its assets during the next several years to drive improved margins and returns for its shareholders as part of its Portfolio Optimization Program.
The company's program includes a number of strategic objectives including strategic divestments; reducing or eliminating debt through sales; investing in high-protein process technology at ethanol plants; repurchasing shares with remaining proceeds and freeing cash flow when market conditions are optimal.
In October 2016, Green Plains acquired California-based Fleischmann's Vinegar Co. for $250 million. Fleischmann's is considered the world's largest manufacturer and marketer of food-grade industrial vinegar.
Todd Neeley can be reached at firstname.lastname@example.org
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