Green Plains Renewable To Buy Global Ethanol

Inside Ireland : September 29 2010

By Rachel Nelligan

NTR-owned ethanol producer Green Plains Renewable Energy is to buy Global Ethanol LLC for $169.2m.

The deal that will increase the ethanol-producing capacity of the Nebraska-based firm by nearly one-third.

Green Plains will acquire Global’s two ethanol plants, in Lakota, Iowa, and Riga, Michigan, which will boost its annual ethanol-producing capacity to about 657 million gallons.

Through this purchase Green Plains is planning to market and distribute more than one billion gallons of ethanol production on an annual basis.

The transaction also includes the assumption of about $98.7m of outstanding debt.

The deal is expected to close in the fourth quarter pending regulatory approvals and customary closing conditions.

Todd Becker, President and CEO of Green Plains Renewable Energy said: “The addition of the Global plants enables us to lower our average cost of ethanol production assets and to achieve greater economies of scale in our marketing, risk management and back office operations.

“We believe this acquisition will be accretive to 2011 earnings. Consistent with our strategy to expand our operations throughout the ethanol value chain, we continue to seek out consolidation opportunities within each of our business segments,” he added.