Attis Industries enters into a definitive agreement to acquire corn ethanol facility and grain malting operation from Sunoco LP

Attis Industries Inc., a diversified innovation and technology holding company announced that it has entered into a definitive asset purchase agreement with Sunoco LP to acquire and operate its corn ethanol plant and grain malting operation in Fulton, NY. The plant will become the essential element of Attis’ expanding technology portfolio as it develops the site into the most comprehensive Green Tech campus for renewable fuels in the country. 

Total consideration for the divestiture is $20 million in cash. The transaction is subject to regulatory clearances and customary closing conditions and is expected to close in the first quarter of 2019. Attis expects to finance the transaction with non-dilutive secured debt financing.

Attis’ management team has a long-standing relationship with Sunoco and the operational team in place at the Fulton, NY ethanol facility.  For Attis, the key to the success of this transaction is the 10-year offtake agreement for the ethanol produced which creates valuable stability for Attis as it plans its capital improvement strategy for the facility. The improvements made at the facility over the next 24 months will create the first of its kind, major renewable energy campus. 

Included within the acquisition is the 1886 Malt House which is a direct beneficiary of incentives designed to promote the local farm to brewery industry.  In 2013, New York created a farm brewery law to provide licenses only to those farmers whose beer is made primarily from locally grown farm products.  Under this program, the Malt House will receive some tax-exempt status and contribute to the $4 billion per year craft brewery business in the state of New York.