Green Plains completes acquisition of Wood River, Fairmont plants

By Erin Voegele | November 26, 2013

Green Plains Renewable Energy Inc. has announced that it completed the acquisition of two 110 MMgy ethanol plants previously owned by BioFuel Energy Corp. The transaction includes the Pioneer Trail Energy plant in Wood River, Neb., and the Buffalo Lake Energy facility in Fairmont, Minn. Green Plains purchased the plants from an entity composed of BioFuel Energy’s lender group.

According to documents filed with the U.S. Securities and Exchange commission, Green Plains acquired the plants for $108 million cash, which includes an initial amount for working capital. The filing notes that an additional amount based on actual working capital will be determined and paid shortly after closing. The filing also specifies that Green Plains currently plans to execute approximately $77 million in term debt agreements, with these assets serving as collateral related to these agreements.

"Our team worked to quickly complete this acquisition and will now move to integrate these two plants into our platform as seamlessly as possible," said Todd Becker, Green Plains president and CEO.  "We will also continue to execute on our strategy to expand and diversify our business and to build long-term shareholder value."

The Fairmont plant was idled by Biofuel Energy in September 2012. When the acquisition was first announced by earlier this month, Green Plains spokesman Jim Stark told Ethanol Producer Magazine his company intends to restart the plant before the end of the year.

With the acquisition of the Wood River and Buffalo Lake plants complete, Green Plains has now owns 12 ethanol plants with more than 1 billion gallons of combined capacity.