The Andersons signs purchase agreement for Iowa Ethanol Plant

The Andersons has signed an agreement to acquire an ethanol production facility in Denison, Iowa from its owners, the Amaizing Energy Denison and Amaizing Energy Holding Company. The transaction, which remains subject to several contingencies, is anticipated to close in the second quarter.

If acquired, The Andersons Denison Ethanol, a wholly owned subsidiary of The Andersons, would own the plant.

'As our first ethanol plant west of the Mississippi, this facility provides us with geographic diversity into some of the best corn ground in the country,' says Neill McKinstray, President, Ethanol Group. 'This purchase enables us to expand our ethanol production, marketing and services into a new region, providing arbitrage and risk management opportunities with the three existing plants we manage while leveraging existing administrative staff to a fourth plant. With much of the same technology in all four plants, we expect to bring additional efficiencies to drive down our cost per gallon, and maximize returns to shareholders as we have successfully demonstrated during the past five years.'

The agreement considers an ethanol facility with an adjacent 2.7 million bushel grain terminal, both with direct access to two Class 1 railroads in Iowa.