GPRE to acquire ethanol plant from Otter Tail Ag Enterprises

By GPRE | February 17, 2011

OMAHA, Neb. -- Green Plains Renewable Energy Inc. announced Feb. 17 that its bid to purchase certain assets of Otter Tail Ag Enterprises LLC was accepted by the bankruptcy court overseeing the auction process. The addition of the 55 MMgy dry-mill ethanol plant near Fergus Falls, Minn., brings GPRE’s total expected production capacity to approximately 715 million gallons annually. Green Plains will finance the $55 million acquisition with cash and financing from a group of nine lenders, led by AgStar Financial Services.

"The Fergus Falls plant is in a great location with ample feedstock and an excellent workforce," said Todd Becker, president and CEO. "We are continually looking for opportunities to expand production at reasonable valuations and adding this operating plant to our business is a solid fit for us. We believe this acquisition will be accretive to 2011 earnings."

Green Plains expects to complete the acquisition in March 2011.