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

The transaction is anticipated to progress after receiving a court approval on the bankruptcy proceedings initiated by Otter Tail Ag Enterprises.

The company said that the asset auction will be held in the next 60 days and there can be no assurances that Green Plains’ bid will be the winning bid among qualifying bids.

Upon completion, the acquisition is expected to increase Green Plains’ ethanol production capacity by approximately 8% to an annual capacity of 712 million gallons.

Green Plains plans to finance the transaction through a mix of available cash on hand and debt financing from existing lenders.