Aurora Cooperative Elevator Company (ACEC) has signed a definitive agreement with Pacific Ethanol for the sale of its 74 percent ownership interest in Pacific Aurora, LLC for $52.8 million before adjustments for working capital. Included in the sale are two ethanol production facilities with a combined annual production capacity of 145 million gallons, a grain elevator with storage capacity of 4.1million bushels and integrated rail facilities located at Aurora, Neb. Proceeds will be in the form of $27 million in cash and $16.5 million in promissory notes. The sale is anticipated to close within the next 45 days, subject to customary closing conditions.
Chris Vincent, Aurora Cooperative president and CEO, said, “This investment is a great opportunity for Aurora Cooperative, it’s owners and the communities that we support. We understand the significance that these two ethanol plants, grain facilities, and rail assets mean to our owners. Achieving full ownership of this local destination market is pivotal to our shared success. We look forward to these assets providing long term value for our owners, our cooperative and our communities.”
Neil Koehler, Pacific Ethanol’s president and CEO, said, “We are pleased to come to agreement with our valued partner, the Aurora Cooperative. The sale of our interest is a win-win for both companies, strengthening Pacific Ethanol’s balance sheet while providing Aurora Cooperative with full ownership of these assets. We are confident that under Aurora Cooperative’s capable management and farmer ownership, the facilities will provide value to the local community and the overall ethanol industry. We are committed to a smooth transition of operations and look forward to further collaboration with Aurora Cooperative in growing a successful ethanol business.”
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