Pacific Ethanol sells ownership interest in Pacific Aurora LLC

By Pacific Ethanol Inc. | April 21, 2020

Pacific Ethanol Inc., a leading producer and marketer of low-carbon renewable fuels and high-quality alcohol products in the United States, announced April 16 it has closed on its agreement to sell its 74 percent ownership interest in Pacific Aurora LLC to Aurora Cooperative Elevator Co. (Aurora Cooperative) for a total valuation of $52.8 million. After working capital adjustments and settlement of certain payables between the parties, the company received at closing $20.2 million of cash, before fees and $16.5 million in promissory notes. Approximately $14.5 million of the cash proceeds will be used to pay principal payments to its lender, CoBank.

Neil Koehler, Pacific Ethanol’s president and CEO, stated, “We are pleased to have completed our sale to Aurora Cooperative and its farmer owners, which represents a significant step in achieving our strategic initiatives to reduce debt and continue to focus our resources on delivering high value alcohol and feed products in the markets we serve.”

Chris Vincent, Aurora Cooperative president and CEO, stated, “Aurora Cooperative is pleased to protect these local destination and rail markets for our farmer owners by gaining full ownership of these ethanol plants, elevator, and rail assets. Through this acquisition Aurora Cooperative will safeguard our markets and be ‘Tougher Together’ for our owners, employees and the communities we serve.”