In the United States (US), agri-business major Green Plains Inc. (GPRE) has announced that it has entered into an asset purchase agreement with compatriot biorefiner and global ethanol major POET LLC, to sell its Green Plains Obion ethanol plant in Rives, Tennessee (TN) for US$190 million in cash, inclusive of an estimated US$20 million of working capital, to be adjusted at closing.
According to Green Plains, proceeds from the sale will be utilized to retire the junior mezzanine debt due in 2026 and enhance liquidity.
The Green Plains Obion transaction is anticipated to close during the third quarter of 2025, subject to customary closing conditions, regulatory approvals, and contains standard representations, warranties, and indemnification obligations.
The sale of our Obion facility reflects our continued commitment to unlocking value for shareholders and strengthening our balance sheet. We have been actively pursuing opportunities that align with our long-term strategy and support disciplined capital allocation. This divestiture not only demonstrates the strength of our asset portfolio but also enables us to fully retire our junior mezzanine notes — a significant milestone in enhancing our financial flexibility and advancing Green Plains’ carbon reduction strategy, said Chris Osowski, CEO of Green Plains.
The company also announced the conclusion of its strategic review process, which began in February 2024.
Following a comprehensive evaluation, the Board of Directors considered a range of alternatives, determining that the company is best positioned to deliver shareholder value by executing its current strategy under existing leadership.
This outcome of the review has provided a clear roadmap for continued operational execution and capital discipline.
BMO Capital Markets Corp. and Moelis & Company served as financial advisors, and Vinson & Elkins acted as legal advisors to Green Plains in connection with this transaction.
Strategic location
According to POET, the location of Green Plains Obion strategically complements POET’s existing Midwest footprint, expanding the company’s portfolio to 35 bioprocessing facilities across nine U.S. states with a combined annual production capacity of 3.1 billion gallons (≈ 11.73 billion litres) of bioethanol.
This acquisition enables POET to produce even more high-quality, American-made biofuels and bioproducts—creating grain markets for our farmers, reducing our dependence on foreign oil, and empowering rural communities to play a key role in strengthening the global bioeconomy, said POET Founder and CEO Jeff Broin.
In addition to bioethanol, POET produces a suite of plant-based bioproducts, including animal feed ingredients, corn oil, biogenic carbon dioxide (bioCO2), and purified alcohol, which are marketed to a growing base of domestic and international customers.
This facility will enhance POET’s competitive advantage within our industry and within the liquid fuel sector by growing our existing fleet and expanding our reach into southeastern markets for bioethanol and other co-products. We’re confident in the future of bioproducts, and this investment underscores that optimism, said POET President and Chief Operating Officer Jeff Lautt.
In 2024, POET was named the nation’s 15th-largest container exporter by S&P’s Journal of Commerce, transporting bioproducts to more than 25 countries. POET also continues to help drive the nationwide, year-round sale of E15, a 15 percent bioethanol blend.
POET was founded nearly 40 years ago with a bold vision: to revitalize rural communities, improve our environment, and redefine our energy future. Today, that vision is more important than ever. We look forward to expanding the POET team to Tennessee as we continue to harness the power of American agriculture and bioprocessing to feed and fuel the world, ended Jeff Broin.
