Pacific Ethanol to acquire Illinois Corn Processing

By Haley Olson | July 07, 2017

Pacific Ethanol will acquire Illinois Corn Processing for $76 million, which includes $15 million in working capital, according to Pacific Ethanol. The transaction is expected to close this month.

ICP is a 90-million-gallon-per-year fuel and industrial alcohol manufacturing, storage and distribution facility adjacent to Pacific Ethanol’s Pekin, Illinois, plant. ICP produces fuel-grade ethanol, beverage and industrial-grade alcohol, dry distillers grain and corn oil. The facility has direct access to end markets via barge, rail and truck.

Combined, the two facilities represent 250 million gallons of production.

“ICP has a history of consistent profitability operating at better-than-average industry margins,” said Neil Koehler, Pacific Ethanol president and CEO, in a statement. “As such, we expect the ICP acquisition to be immediately accretive to earnings. To further enhance the plant’s value, we have identified several improvement initiatives. As we apply the best practices developed at our plants, we expect to improve yields, increase plant capacity utilization and continue to enhance ICP’s production processes through additional capital investments.”