News Summary
Green Plains Inc. has completed an agreement to sell its ethanol plant in Rives, Tennessee, to POET for $190 million in cash. The deal is set to close in the third quarter of 2025 and will help Green Plains retire its junior mezzanine debt due in 2026. This strategic move aligns with the company’s efforts to enhance financial stability and advance its carbon reduction strategy as part of its commitment to sustainability. Financial advisors BMO Capital Markets and Moelis & Company facilitated the transaction, signaling a shift in Green Plains’ operational focus.
Tennessee
Green Plains Inc. has finalized an asset purchase agreement to sell its ethanol plant located in Rives, Tennessee, to POET for $190 million in cash. This sale represents a significant financial maneuver for Green Plains and is expected to close in the third quarter of 2025, pending regulatory approvals and customary closing conditions.
The figure of $190 million includes approximately $20 million allocated for working capital, which is subject to adjustment at the time of closing. The proceeds from this sale are intended to fully retire the company’s junior mezzanine debt due in 2026, thereby enhancing Green Plains’ liquidity and financial stability.
Transaction Details
As part of the agreement, standard representations, warranties, and indemnification obligations are included. Green Plains Inc., a company focused on renewable fuels and sustainable ingredients, has been actively engaged in a strategic review process since February 2024. This review was aimed at determining the best approach to deliver shareholder value while maintaining strong operational execution and capital discipline.
During this review, the company outlined a roadmap designed to enhance its financial flexibility and advance its carbon reduction strategy. The sale of the Rives facility is viewed as a key component of this transition, as it aligns with the company’s objectives of unlocking shareholder value and strengthening the balance sheet.
Financial Advisors
Green Plains enlisted the services of BMO Capital Markets Corp. and Moelis & Company as financial advisors to navigate the transaction. Additionally, Vinson & Elkins served as legal advisors, addressing all necessary legal matters related to the sale.
About Green Plains Inc.
Green Plains Inc. operates a biorefinery located in Obion, Tennessee, with a production capacity of 120 million gallons of ethanol per year. The company is committed to producing renewable fuels and advancing sustainability through innovative solutions, including carbon capture and storage. Three of Green Plains’ facilities are set to implement carbon capture technologies later this year as part of a broader sustainability initiative.
Market Implications
This transaction with POET marks a significant strategic shift for Green Plains, which continues to adapt its operations in response to changing market demands and the increasing importance of environmental responsibility. By divesting the Rives facility, the company aims to focus its resources on more strategic initiatives that promote shareholder value and sustainable operations.
Conclusion
The sale of the Rives ethanol plant to POET highlights Green Plains’ proactive approach to financial management and operational efficiency. As the ethanol market evolves, Green Plains is positioning itself to thrive while advancing its commitments to sustainability and renewable energy solutions.
Deeper Dive: News & Info About This Topic
- Business Wire
- Wikipedia: Ethanol
- Vinson & Elkins News
- Google Search: Green Plains ethanol plant sale
- Ethanol Producer
- Encyclopedia Britannica: Renewable Energy
- ChemAnalyst
- Google News: Green Plains Obion Tennessee plant
- TipRanks
- Google Scholar: Green Plains plant sale
- World Grain
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