Hawkeye Renewables, LLC announced today that it entered into an agreement to sell its ethanol plants located in Iowa Falls and Fairbank, Iowa, to Flint Hills Resources Renewables, LLC in an all-cash transaction. Flint Hills Resources Renewables is an affiliate of Koch Industries, Inc. and Flint Hills Resources, LLC, a leading provider of transportation fuels used in the Upper Midwest. The purchase price for the transaction is not being disclosed. The transaction is subject to customary closing conditions and is expected to close early in the first quarter of 2011. Hawkeye Renewables has received the requisite consent from its equity holders to approve the transaction.
Hawkeye Renewables emerged from its Chapter 11 restructuring on June 18, 2010, under new equity ownership. "Over the past six months we have made significant progress in improving Hawkeye Renewables' operations," said James V. Continenza, Chairman of the Board of Directors of Hawkeye Renewables. "Our agreement with Flint Hills builds on this solid foundation and represents a successful conclusion to the strategic review that our Board began to maximize equity holder value." Mr. Continenza added, "It is my belief that Flint Hills Resources Renewables will be a committed operator in the Iowa community and will work diligently to develop and maintain relationships with Hawkeye Renewables' existing vendors, suppliers, and farmers."
*NOTE* In August, Flint Hills announced that they were buying two Iowa ethanol plants from Hawkeye Growth. The two plants are located in Menlo and Shell Rock, Iowa.
When I first saw today's announcement I thought it was probably talking about the same two plants but calling them by different names for the communities that they are located in. According to this press release issued when Hawkeye Renewables exiting bankruptcy reorganization, the two plants in today's announcement are different from those involved in the August announcement and Hawkeye Renewables and Hawkeye Growth are two separate entities. Here are a couple of exerts from that press release.
"Hawkeye Renewables, LLC (“Renewables”) with ethanol plants in Iowa Falls and Fairbank, Iowa, announced it successfully emerged on June 18, 2010 from its Chapter 11 restructuring under new equity ownership."
"The restructuring process did not include Hawkeye Growth plants in Menlo and Shell Rock, Iowa."