Green Plains completes sale of Texas plant to Hereford Ethanol Partners
US agri-business Green Plains Inc. has announced that its subsidiary, Green Plains Hereford LLC, has completed the previously announced sale of its ethanol plant located in Hereford, Texas (TX), to Hereford Ethanol Partners, L.P. for US$39 million, plus working capital.
Earlier this month, Green Plains announced that its subsidiary Green Plains Hereford LLC had entered into an asset purchase agreement with Hereford Ethanol Partners, L.P. to sell its 100 million (US) gallon (≈ 378 million litres) ethanol plant located in Hereford, Texas (TX) for US$39 million. This has now been concluded.
In addition, an earnout provision of up to US$75 million related to certain value enhancement opportunities, including future earnings from Low Carbon Fuel Standard (LCFS) credits was included as part of the transaction.
In conjunction with this transaction, Green Plains Partners LP also announced it has completed the sale of the storage assets and the assignment of certain rail transportation assets associated with Green Plains Hereford LLC for US$10 million. The proceeds from the transaction were used to repay debt.