Ocean Park Advises on $328M Pending Sale of Green Plains’ Three Ethanol Plants to Valero
October 10, 2018 – Green Plains Inc. (“Green Plains”) announced it has entered into an asset purchase agreement with Valero Renewable Fuels Company LLC to sell three of its ethanol plants for $300 million in cash, plus approximately $28 million of working capital. Ocean Park acted as the lead financial advisor to Green Plains on the transaction.
The assets comprise of three ethanol plants in Lakota, Iowa; Bluffton, Indiana; and Riga, Michigan which total 280 million gallons of nameplate capacity, or approximately 20% of Green Plains’ ethanol production capacity. The transaction is expected to close during the fourth quarter of 2018 and is subject to customary closing conditions and regulatory approvals.
“The sale of these three ethanol plants demonstrates our commitment to strengthening our balance sheet and unlocking value for our shareholders. We will continue with our optimization plan and anticipate communicating additional transactions in the near future,” said Todd Becker, President and Chief Executive Officer of Green Plains.
In May 2018, Green Plains announced its intention to reposition assets under a Portfolio Optimization Program to drive improved margins and returns for shareholders. This sale is a first step towards Green Plains’ strategic objective of significantly reducing or eliminating its term debt by the end of 2018.
“We are pleased to reach this milestone for Green Plains and look forward to completing the transaction in the near term,” said Mark Fisler, Ocean Park managing director.
Green Plains Inc. (NASDAQ:GPRE) is a diversified commodity-processing business with operations related to ethanol production, grain handling and storage, cattle feeding, food ingredients, and commodity marketing and logistics services. The company is one of the leading producers of ethanol in the world and, through its adjacent businesses, is focused on the production of high-protein feed ingredients and export growth opportunities. Green Plains owns a 62.4% limited partner interest and a 2.0% general partner interest in Green Plains Partners. For more information about Green Plains, visit www.gpreinc.com.
Ocean Park is a boutique investment bank that advises on mergers and acquisitions, financings and restructurings with extensive experience in the renewable fuels, cleantech, food and agribusiness industries. Ocean Park has completed 25 renewable fuels M&A transactions since 2006. Any securities are offered through Ocean Park Securities, LLC, a member of FINRA and SIPC. Ocean Park’s professionals are licensed registered representatives of Ocean Park Securities, LLC. For more information, please visit www.oceanpk.com.