December 18, 2020
A subsidiary of Green Plains Inc. has agreed to sell its 100-million-gallon ethanol plant in Hereford to Hereford Ethanol Partners, L.P. for $39 million, plus working capital, and an earnout provision of up to $75 million related to certain value enhancement opportunities.
The Green Plains subsidiary, Green Plains Hereford LLC, has also entered into an asset purchase agreement with Green Plains Partners LP and its affiliates to acquire the storage and transportation assets and the assignment of railcar leases associated with the Hereford ethanol plant for $10 million.
“The sale of the Hereford ethanol facility allows us to reallocate capital to support the accelerated buildout of our Ultra-High Protein technology and continue our total transformation to an ag-tech focused company,” said Todd Becker, president and CEO of Green Plains.
Hereford Ethanol Partners, L.P. is a newly formed, wholly-owned subsidiary of a privately-held Texas investment group.
Photo courtesy of Synergen Consulting.
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