US renewable fuels producer Pacific Ethanol has agreed to sell its 75% ownership interest in Pacific Aurora for $52.8 million (€47.3 million).
The sale includes two ethanol production facilities with a combined annual production capacity of 145 million gallons, a grain elevator with storage for 4.1 million bushels, as well as integrated rail facilities in Nebraska, US.
The interest will be sold to Aurora Cooperative Elevator, which currently holds a 26% interest in Pacific Aurora. Completion of the sales, which is subject to customary closing conditions, is expected sometime in early April 2020.
“We are pleased to come to agreement with our valued partner Aurora Cooperative,” commented Neil Koehler, president and CEO of Pacific Ethanol. “The sale of our interest is a win-win for both companies, strengthening Pacific Ethanol’s balance sheet while providing Aurora Cooperative with full ownership of these assets.
“We are confident that under Aurora Cooperative’s capable management and farmer ownership the facilities will provide value to the local community and the overall ethanol industry. We are committed to a smooth transition of operations and look forward to further collaboration with Aurora Cooperative in growing a successful ethanol business.”
Chris Vincent, president and CEO of Aurora Cooperative, added: “This investment is a great opportunity for Aurora Cooperative, its owners, and the communities that we support. We understand the significance that these two ethanol plants, grain facilities and rail assets mean to our owners. Achieving full ownership of this local destination market is pivotal to our shared success. We look forward to these assets providing long term value for our owners, our Cooperative and our communities.”
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