The ethanol plants are located in Wood River, Nebraska and Fairmont, Minnesota. BioFuel Energy had previously agreed to transfer the ethanol plants to the lender group entity following a deed in lieu of foreclosure.
The two facilities have a combined annual production capacity of approximately 220 million gallons. The acquisition will increase Green Plains' production capacity by 28% to over 1.0 billion gallons of ethanol, 2.9 million tons of distillers grains and 230 million pounds of corn oil per year.
Green Plains will purchase the ethanol plants for approximately US $101 million, plus working capital at closing. Upon successful completion of the transaction, the company will work to restart the Fairmont, plant, which it anticipates being back in production by the end of 2013.
"Our growth strategy remains focused on right location, right technology at the right price for ethanol production assets and this acquisition meets all three criteria," said Todd Becker, president and CEO. "We have become very proficient in operating multiple process technologies and adding these two ethanol plants continues to drive greater economies of scale in our marketing, risk management and back office operations. We believe this acquisition will be accretive to 2014 earnings and is consistent with our strategy to expand our operations throughout the ethanol value chain and grow long-term shareholder value."