Green Plains Inc. has announced that it has completed the sale of its three ethanol plants to Valero Renewable Fuels Co. LLC for US$319 million in cash, including net working capital and other adjustments.
The transaction includes ethanol plants located in Bluffton, Indiana, Lakota, Iowa, and Riga, Michigan, all US, which represented approximately 20% of Green Plains’ reported ethanol production capacity.
In conjunction with this transaction, Green Plains Partners LP has announced that it has completed the sale of the storage assets and assignment of the rail transportation assets associated with the three ethanol plants to Green Plains Inc.
The consideration for the transaction consisted of 8.7 million Green Plains units and a portion of the general partner interest equating to 0.2 million hypothetical limited partner units to maintain the general partner’s 2% interest. Green Plains Partners will receive as additional consideration, approximately US$2.6 million in cash related to the present value gain on railcars transferred, subject to certain post-closing adjustments.