OMAHA, NEBRASKA, U.S. — Green Plains Renewable Energy, Inc. (Nasdaq:GPRE) announced on June 3 that it has signed a purchase agreement to acquire the membership interests of Choice
Ethanol Holdings, LLC, the entity that owns the former NEDAK Ethanol, LLC ethanol plant located in Atkinson, Nebraska, U.S., and an ethanol storage and loading facility located approximately 15 miles east of the plant.
The dry-mill ethanol plant will add approximately 50 million gallons of operating capacity to Green Plains' current annual production capacity of 740 million gallons.
"The acquisition of the plant in Atkinson expands our ethanol production platform and aligns with our ongoing strategy of growing our business and enhancing long-term shareholder value," said Todd Becker, Green Plains' president and chief executive officer. "The plant meets our disciplined acquisition criteria and we have a deep understanding of this technology, size and geographic area. We believe we can rapidly improve the overall performance of this plant."
The ethanol plant utilizes Delta-T processing technology. The ethanol storage facility holds approximately 24,000 barrels of ethanol and is located on the BNSF rail line. Green Plains plans to staff and re-start the plant within the next four weeks. Once the transaction closes, the company plans to begin installing corn oil extraction technology, which should be completed in the fourth quarter of 2013. Completion of this transaction is subject to standard and customary closing conditions.
Carl Marks Advisory Group served as exclusive financial advisor to Choice Ethanol Holdings, LLC.