October 22, 2010
announced today that it completed the previously-announced acquisition of Global Ethanol, LLC. The addition of the two Global plants increases Green Plains' capacity by 31% to approximately 657 million gallons per year. Green Plains now expects to market and distribute more than one billion gallons of ethanol on an annual basis.
At the execution of the definitive agreement, the transaction was valued at approximately $169.2 million of which $147.6 million was paid for the Global ethanol production facilities with the balance for working capital. The value of the transaction includes the assumption of outstanding debt, which totaled approximately $98.7 million at that time. Upon completion of the acquisition, all outstanding units of Global were exchanged, in the aggregate, for 4,386,027 shares of restricted common stock of Green Plains, warrants to purchase 700,000 shares of restricted common stock of Green Plains and $20.0 million in cash. The warrants are not transferable, except in certain limited circumstances, and will be exercisable for a period of three years from the closing date at a price of $14.00 per share.
"We are delighted to complete this transaction and believe the transition of these two operating plants into our diversified platform will be accomplished quickly," said Todd Becker, President and CEO of Green Plains Renewable Energy. "We welcome the 94 employees at these plants to our team."
See Also :
Green Plains Renewable Energy to Implement Corn Oil Extraction Technology
Green Plains Renewable Energy and BioProcess Algae to Break Ground on Phase II of Algae Project
Two Iowa Ethanol Plants Getting Wind Power