Green Plains has emerged as the successful bidder to acquire three ethanol plants which have been put up for sale by Abengoa Bioenergy under the US Bankruptcy Code provisions.
The company will acquire the plants for approximately $237m in cash, plus certain working capital adjustments.
The acquisition includes the Madison, Ill., Mount Vernon and York ethanol facilities in the US. They have a combined annual production capacity of 236 million gallons per year.
Green Plains president and chief executive officer Todd Becker said: “We continue to focus on making strategic investments in high quality assets as we expand our production footprint.
“The Madison and Mount Vernon plants will give us access to the Mississippi River, supporting our new export terminal planned in Beaumont, Texas. In addition, we will broaden our product offering globally with industrial alcohol production at the York plant.
“These acquisitions further our commitment to deliver long-term value for both Green Plains and Green Plains Partners shareholders.”
Following the completion of the acquisitions, Green Plains will own and operate 17 dry mill ethanol facilities with combined production capacity of nearly 1.5 billion gallons per year.
However, the transaction is subject to review and approval by the US Bankruptcy Court for the Eastern District of Missouri.
The transaction is expected to be completed before or on 30 September, 2016.
It is also subject to regulatory approval and customary closing conditions.
In November 2015, Green Plains signed an agreement with Murphy USA to acquire ethanol production facility located in Hereford, Texas, US, for $93.8m.