Green Plains completes sale of three ethanol plants to Valero Renewable Fuels

Green Plains Inc. has completed the previously announced sale of its three ethanol plants to Valero Renewable Fuels Company LLC for US$319 million in cash, including net working capital and other adjustments. The transaction includes ethanol plants located in Bluffton, Ind., Lakota, Iowa, and Riga, Mich. which represented approximately 20% of the company’s reported ethanol production capacity.

In conjunction with this transaction, Green Plains Partners LP has completed the sale of the storage assets and assignment of the rail transportation assets associated with the three ethanol plants to Green Plains Inc. The consideration for the transaction consisted of 8.7 million Green Plains units and a portion of the general partner interest equating to 0.2 million hypothetical limited partner units to maintain the general partner’s 2% interest. Green Plains Partners will receive as additional consideration, approximately $2.6 million in cash related to the present value gain on railcars transferred, subject to certain post-closing adjustments.