Green Plains agrees sale of three biofuel plants to Valero Renewable Fuels Company

Green Plains Inc. has announced that it has entered an asset purchase agreement with Valero Renewable Fuels Company LLC to sell three of its ethanol plants located in Lakota (Iowa), Bluffton (Indiana) and Riga (Michigan) for US$300 million in cash, plus approximately US$28 million of working capital also paid in cash. The transaction involves 280 million gallons of nameplate capacity, or approximately 20% of the Green Plains' reported ethanol production capacity.

The facility in Iowa spans 230 acres, produces up to 124 million gallons per year and entered into operation in November 2002. The plant in Michigan spans 137 acres, produces up to 60 million gallons per year and was put into operation in February 2007. The Indiana plant spans 420 acres, produces up to 120 million gallons per year and entered into operation in September 2008.

The transaction is anticipated to close during the fourth quarter of 2018. These purchase agreements are subject to customary closing conditions, regulatory approvals and contain normal and customary representations, warranties, and indemnification obligations.

Ocean Park and XMS Capital Partners acted as financial advisors and Husch Blackwell LLP acted as legal advisors to Green Plains in connection with the transaction.