OAKHURST, N.J. (DTN) -- Alto Ingredients Inc. announced on Wednesday, April 28, that it has signed a definitive agreement with Seaboard Energy California LLC to sell its fuel ethanol production facility in Madera, California, for total consideration of $28.3 million, comprised of $19.5 million in cash and $8.8 million in assumption of liabilities.
The sale of the 40 million-gallon-per-year facility is expected to close in the current quarter, subject to customary closing conditions. The majority of the cash proceeds will be used to retire company debt.
"We further optimized our production footprint with the sale of our Madera facility, which will reduce the carrying cost associated with our idled plants," said Michael Kandris, Alto Ingredients Inc.'s president and CEO. "We are in discussions to sell our other idled California facility in Stockton and will announce those terms once an agreement has been reached."
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