Green Plains considers purchase of food ingredients company

By Erin Voegele | August 12, 2016

Green Plains Inc. recently announced the company has executed a non-binding letter of intent to acquire a complementary business in the food ingredients industry for a proposed price of $225 million to $275 million.

According to the company, the proposed acquisition is part of its growth strategy that includes plans to invest in food and feed ingredients markets. In documents filed with the U.S. Securities and Exchange commission, Green Plains indicated the company is currently only conducting due diligence and is in preliminary discussions with the potential seller.

The acquisition would be subject to several conditions, including customary due diligence, approval of Green Plains’ board of directors, obtaining any necessary regulatory approvals, and negotiating a definitive binding agreement with the potential target’s parent company.

According to SEC documents, the transaction could close as soon as the third quarter.