Pacific Ethanol, Inc., a leading producer and marketer of low-carbon renewable fuels and high-quality alcohol products in the U.S., has closed on its agreement to sell its 74% ownership interest in Pacific Aurora, LLC to Aurora Cooperative Elevator Company (Aurora Cooperative) for a total valuation of $52.8 million.
After working capital adjustments and settlement of certain payables between the parties, Pacific Ethanol received at closing $20.2 million of cash, before fees and $16.5 million in promissory notes. Approximately $14.5 million of the cash proceeds will be used to pay principal payments to its lender, CoBank.
"We are pleased to have completed our sale to Aurora Cooperative and its farmer owners, which represents a significant step in achieving our strategic initiatives to reduce debt and continue to focus our resources on delivering high value alcohol and feed products in the markets we serve," says Neil Koehler, Pacific Ethanol’s president and CEO.
Chris Vincent, Aurora Cooperative President and CEO, says Aurora Cooperative is pleased to protect these local destination and rail markets for its farmer owners by gaining full ownership of the ethanol plants, elevator, and rail assets.
"Through this acquisition Aurora Cooperative will safeguard our markets and be ‘Tougher Together’ for our owners, employees and the communities we serve," he says.
