Market Overview

Green Plains Renewable Energy to Acquire Global Ethanol, LLC for $169.2M

Green Plains Renewable Energy, Inc. (Nasdaq: GPRE) announced today that it has entered into a definitive agreement to acquire Global Ethanol, LLC.

The acquisition will increase Green Plains' capacity by 31% to approximately 657 mmgy. Once the transaction is closed, Green Plains will market and distribute more than one billion gallons of ethanol production on an annual basis.

Green Plains estimates the total value of the transaction at approximately $169.2 million, including approximately $147.6 million for the ethanol production facilities and the balance in working capital. The definitive agreement provides that the proposed acquisition will be accomplished through a merger of a newly formed wholly-owned subsidiary of Green Plains with Global.

Upon closing of the merger, the outstanding units of Global will be 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 total value of the transaction includes the assumption of approximately $98.7 million of outstanding debt.

Posted-In: News M&A

 

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