September 22, 2010
Today Renewable Energy Group® and ARES Corporation announced REG will acquire biodiesel assets in Clovis, New Mexico from ARES Corporation who will concurrently invest an additional $8 million into Renewable Energy Group (REG) in an all common stock transaction.
ARES Corporation of Burlingame, Calif.— one of the foremost engineering, risk management, software/IT and project management companies in the United States—owned the 15 million gallons per year facility in Clovis, New Mexico.
“In support of RFS2, REG continues to expand its national footprint of production facilities and related logistics to better serve our growing customer base of regional and national businesses. We consider this position in the Southwest to be a long‐term, strategic move for our company,” said Daniel J. Oh, President and Chief Operating Officer of Renewable Energy Group. “ARES’ strategic investment provides REG access to ARES’ world class engineering, risk management and government contracting expertise.”
“REG has proven its leadership in the biodiesel industry and is exceptionally well placed to lead the industry recovery,” said Richard (Dick) Stuart, ARES Corp. Chief Executive Officer.
Stuart added: “ARES is proud of its efforts to contribute to America’s quest for energy independence and a cleaner environment. In our new economy we believe the best and most likely place for our investment to succeed is with REG; therefore we are contributing assets and investing anew to help move REG and its efforts forward.”
“Renewable Energy Group has shown strong biodiesel industry leadership when it comes to creating green collar jobs at its industry leading biodiesel production facilities,” said Clovis Industrial Development Corporation Executive Director, Chase Gentry. “We look forward to REG’s involvement in this ongoing green economy project as the City of Clovis, State of New Mexico and the Southwest region look to reduce our dependence on imported oil and improve our air quality.”
Source : Press Release