Ocean Park Completes $319M Sale of Green Plains’ Three Ethanol Plants to Valero
November 15, 2018 – Green Plains Inc. (“Green Plains”) announced that it has successfully closed on the sale of three ethanol plants to Valero Renewable Fuels Company LLC for $319 million in cash, including net working capital and other adjustments. Ocean Park acted as the lead financial advisor to Green Plains on the transaction.
The assets comprise of three ethanol plants in Bluffton, Indiana; Lakota, Iowa; and Riga, Michigan which represented approximately 20% of Green Plains’ ethanol production capacity.
“Ocean Park was instrumental in developing the marketing strategy and executing on a comprehensive sale process that generated interest from numerous parties,” said Todd Becker, President and Chief Executive Officer of Green Plains. “Their expertise in M&A transactions, knowledge of the ethanol sector and deep industry relationships contributed to this successful transaction.”
In May 2018, Green Plains announced a Portfolio Optimization Program to drive improved margins and returns for shareholders. The proceeds from this transaction and other asset sales will enable Green Plains to fully retire its term debt for the first time in the company’s history.
“This is the largest ethanol M&A transaction in the ethanol sector since 2015 and marks the twenty-sixth successful biofuels transaction for Ocean Park, which further solidifies our position as a leading advisor in the renewable fuels and chemicals industries,” 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 49.1% 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 26 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.
