News / Green Plains to purchase three Abengoa Bioenergy Ethanol Plants

Green Plains to purchase three Abengoa Bioenergy Ethanol Plants

🕔 August 24, 2016
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Green Plains (GPRE) has announced 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, Ill., Mount Vernon, Ind. and York, Neb. ethanol facilities, with combined annual production capacity of 236 million gallons per year, for approximately $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.

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, 2016. The acquisitions are expected to be complete no later than Sept. 30, 2016, subject to regulatory approval and customary closing conditions, at which time the ethanol storage and transportation assets will be offered to Green Plains Partners.

Additionally, GPRE has announced the completion of its offering of US$170 million aggregate principal amount of 4.125% convertible senior notes due 2022. The company intends to use the net proceeds from the offering for general corporate purposes, including the financing of a portion of the potential acquisition of two ethanol plants affiliated with Abengoa Bioenergy.

Todd Becker, president and chief executive officer at Green Plains, stated:

"We continue to focus on making strategic investments in high quality assets as we expand our production footprint. The Madison and Mount Vernon plants will give us access to the Mississippi River, supporting our new export terminal planned in Beaumont, Texas. In addition, 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 transaction is part of Abengoa's divestment process associated to its bankruptcy. In April 2016 we reported that Abengoa sold to Vela Energy four photovoltaic plants located in the provinces of Seville and Jaen. Previously, Abengoa announced the sale of its Campo Palomas wind farm, located in Uruguay; its participation in the Shams-1 solar power plant, located in United Arab Emirates; as well as other properties such as the former headquarters of the company in Madrid, Spain.



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