Green Plains acquires Otter Tail Ag Enterprises
North America's fourth largest ethanol producer Green Plains Renewable Energy's bid to purchase certain assets of Otter Tail Ag Enterprises has been accepted.
The bid was accepted by the bankruptcy court, which was overseeing the auction process.
The addition of the 55 million gallon-a-year dry-mill ethanol plant near Fergus Falls in Minnesota, US, brings Green Plains' total expected production capacity to approximately 715 million gallons annually.
Green Plains will finance the $55 million (€40.2 million) acquisition with cash and financing from a group of nine lenders, led by AgStar Financial Services.
'The Fergus Falls plant is in a great location with ample feedstock and an excellent workforce,' says Todd Becker, president and CEO of Green Plains Renewable Energy. 'We are continually looking for opportunities to expand production at reasonable valuations and adding this operating plant to our business is a solid fit for us. We believe this acquisition will be accurate for 2011 earnings,' he continues.
Green Plains expects to complete the acquisition by March 2011.