Renewable Energy Group sign $15m deal to acquire Imperium Renewables

Renewable Energy Group (REG) and Imperium Renewables have announced that they have signed an asset purchase agreement where REG would acquire substantially all the assets of Imperium.

The assets to be acquired by REG include a 100 million gallon nameplate capacity biomass-based diesel refinery and deepwater port terminal at the Port of Grays Harbor, Washington.

Under the terms of the agreement, REG will pay Imperium $15 million (appr. €13.7 million) in cash and issue 1.5 million shares of REG common stock in exchange for substantially all of Imperium’s assets.

In addition to these payments, REG will pay either $1.75 million in cash or 175,000 shares of REG common stock at closing as elected by REG.

For two years post-closing, Imperium may receive up to a $0.05/gallon payment for biomass-based diesel produced and sold, and in addition at closing, Imperium will retain its net working capital value of approximately $25 million.

REG will also assume $5.2 million of Imperium’s debt from Umpqua Bank, which has agreed to provide REG Grays Harbor with an additional loan capacity of up to $5 million to fund capital expenditures and improvements at the Grays Harbor facility.

Closing is subject to satisfaction of customary closing conditions.

Based in Ames, Iowa, REG produces and markets biomass-based diesel, with 10 active biorefineries across the US and a nationwide production, distribution, and logistics system.

Seattle-based Imperium Renewables began developing proprietary technology and processes in the production of biodiesel in 2004.

The Grays Harbor refinery began operation in August 2007 in Hoquiam, Washington, and is well positioned for advanced biofuel production, storage, and transport from southern California to western Canada.

The fully-operational 100 million gallon nameplate capacity biorefinery will be renamed REG Grays Harbor.

The facility includes 18 million gallons of storage capacity and a terminal that can accommodate feedstock intake and fuel delivery on deep-water Panamax class vessels as well as possessing significant rail and truck transport capability.