GPRE completes acquisition of production facilities

By Kris Bevill | June 03, 2009
Report posted July 7, 2009, at 1:26 p.m. CST

Green Plains Renewable Energy Inc. has completed the acquisition a 100 MMgy ethanol production facility in Central City, Neb., and a 50 MMgy production facility in Ord, Neb. The former VeraSun Energy Corp. plants were purchased by GPRE from a lender group led by AgStar Financial Services for $123.5 million. The lending group had acquired the facilities via a bankruptcy auction earlier this year and has agreed to provide financing for GPRE's acquisition. (Read "GPRE to acquire two Nebraska VeraSun plants" for more information.)

"We are delighted to close this transaction and look forward to bringing these plants online as soon as possible," GPRE President and CEO Todd Becker said. "We welcome over 80 new employees to the Green Plains team."

According to Jim Stark, GPRE's vice president of investor relations, the company plans to begin producing ethanol at the facilities by the end of July and expects both facilities to operate at full capacity soon after start-up.

GPRE operates four other production facilities - a 50 MMgy facility in Shenandoah, Iowa; a 50 MMgy facility in Superior, Iowa; a 100 MMgy facility in Bluffton, Ind., and a 100 MMgy facility in Obion, Tenn. The company's total production capacity is 480 MMgy with an additional marketing capacity of 305 MMgy.