ADM reaches deal with BioUrja Group for ethanol plant divestment Peoria
In the United States (US), Archer Daniels Midland Company (ADM), one of the world’s largest agricultural processors and food ingredient providers has announced that it has reached an agreement to sell its ethanol production complex in Peoria, Illinois (IL), to compatriot energy and agricultural commodity trading and supply group BioUrja Group.
The sale of our Peoria facility is an important element of the strategic review of our dry mill ethanol assets. By reducing our ethanol capacity by 135 million gallons and redeploying the resulting capital to other strategic growth investments, we’re continuing the dynamic transformation of ADM’s business portfolio that we began a decade ago. We continue to execute on our strategic priorities, and we are excited about the opportunities ahead of us as we drive sustainable growth, said Juan Luciano, CEO, ADM.
Headquartered in Houston, Texas (TX), BioUrja Group supplies biofuels, grains, animal feed ingredients, specialty metal alloy pipes, and refined products to customers, as well as trades electric power, and owns and operates energy logistics terminals and grain storage facilities.
As a leading supplier of biofuels, we are excited to enter into the bio-ethanol production sector and become more vertically integrated. We are enthused about the growing beverage-grade and highly-distilled industrial alcohol markets, which are the focus of the Peoria plant, and are glad to absorb supplemental fuel ethanol into our existing supply capabilities. This is an opportunity for us to continue our growth in the renewables sector and participate in the global energy transition. It’s a double bottom-line deal for us because of the strong financial performance of the plant and its contributions to our ESG strategy, Amit Bhandari, Chairman, and CEO BioUrja Group.
The deal is expected to close in the coming weeks. ADM will work closely with BioUrja to ensure a smooth transition of the approximately 150 colleagues at Peoria.
I’d like to thank our colleagues in Peoria, who have done superb work, including as we flexed to meet surging customer needs for industrial alcohol for use in hand sanitizer last year. We appreciate their dedication, and know they’ll be a tremendous asset for BioUrja, said Juan Luciano.
BioUrja Group’s Chief Operating Officer, Shék Jain, who managed the transaction on BioUrja’s behalf, echoed those sentiments.
We welcome ADM’s Peoria plant employees to our family. We know that they are excellent performers and are dedicated to ensuring the plant is run with exceptional care. We are proud to include them in our team. We are also grateful for ADM’s corporate personnel, who worked tirelessly in ensuring the success of this transaction, said Shék Jain.