Green Plains signs asset purchase agreement

Green Plains Renewable Energy, the fourth largest ethanol producer in the US, has signed an asset purchase agreement with Otter Tail Ag Enterprises to acquire its 55 million gallon-a-year capacity dry-mill ethanol plant near Fergus Falls, Minnesota.

The proposed transaction is anticipated to progress through a court-approved bankruptcy processing initiated by Otter Tail Ag Enterprises. If confirmed by the Banking Court, Green Plains' bid would then be considered the stalking horse in an asset auction to be held in the next 60 days.

'We remain focused on our growth strategy of acquiring operating assets that expand our ethanol platform and contribute immediately to our financial results,' says Todd Becker, president and CEO of Green Plains.

If completed, the acquisition would increase Green Plains' ethanol production capacity by approximately 8% to an annual capacity of 712 million gallons. The company plans to finance the transaction through a mix of available cash on hand and debt financing from existing lenders.

Source: Green Plains Renewable Energy