February 17, 2011
Green Plains Renewable Energy, Inc. announced today that its bid to purchase certain assets of Otter Tail Ag Enterprises, LLC was accepted by the bankruptcy court overseeing the auction process. The addition of the 55 million gallon per year dry-mill ethanol plant near Fergus Falls, MN brings Green Plains' total expected production capacity to approximately 715 million gallons annually. Green Plains will finance the $55 million acquisition with cash and financing from a group of nine lenders, led by AgStar Financial Services.
"The Fergus Falls plant is in a great location with ample feedstock and an excellent workforce," stated Todd Becker, President and CEO of Green Plains Renewable Energy. "We are continually looking for opportunities to expand production at reasonable valuations and adding this operating plant to our business is a solid fit for us. We believe this acquisition will be accretive to 2011 earnings."
Green Plains expects to complete the acquisition in March 2011.