Husch Blackwell represented Green Plains Inc., one of the world’s leading producers of ethanol, in its sale of three of ethanol plants for $300 million in cash to Valero Renewable Fuels Company LLC. The transaction included approximately $28 million of working capital, also paid in cash. The three plants are located in Iowa, Indiana and Michigan and accounted for 280 million gallons of nameplate capacity, or approximately 20% of Green Plains’ reported ethanol production capacity.
In a related transaction, Green Plains Inc. entered into an asset purchase agreement with Green Plains Partners LP to acquire the storage and transportation assets and the assignment of railcar leases associated with the ethanol plants involved in the Valero transaction. Green Plains Inc. will exchange approximately 8.9 million units it owns of Green Plains Partners LP, valued at $120.9 million, for the storage and transportation assets and railcar leases.
Both transactions are anticipated to close during the fourth quarter of 2018 and are subject to customary closing conditions and regulatory approvals. For more information, refer to the Green Plains Inc. press release. The Husch Blackwell team was led by David Gardels and included Jim Ash, Mike Eason, Tori Sitz, and Rebecca Taylor.