Ethanol producer Green Plains announced in a press release that it had entered into an agreement with renewable fuels company Valero to sell three of its ethanol plants.
Located in Lakota, Iowa; Bluffton, Indiana; and Riga, Michigan, the plants will be sold for $300 million (€258 million) in cash as well as approximately $28 million (€24 million) of working capital.
The transaction includes 280 million gallons of ethanol capacity, which Green Plains claims is 20% of its current total capacity.
“The sale of these three ethanol plants demonstrates our commitment to strengthening our balance sheet and unlocking value for our shareholders,” said CEO of Green Plains, Todd Becker.
“As we stated in May, when we outlined our Portfolio Optimization Program, we would divest assets that enable us to execute our long-term strategic objectives. This sale is the first step towards our strategic objectives to prove the value of our assets and to significantly reduce or eliminate term debt by the end of 2018. We will continue with our optimization plan and anticipate communicating additional transactions in the near future.”